BSE Index Analysis, Securties , Standard Experts
ADRIAN MOWAT of JP Morgan
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| ADRIAN MOWAT of JP Morgan |
Source: CNBC
Equities to head higher in Q1 on better Q4 fundamentals
Equities are likely to move higher through the first quarter of the New Year on the back of marked improvements in fundamentals seen in the last quarter of the financial year.
Sovereign credit risks have declined sharply in the US and a proactive ECB has ensured ample liquidity in Europe," he says.
The only risk to equities is China having a hard landing. Steel and Cement production are declining in China as the effects of the property market rolling over gets see-through into demand of physical commodities and construction activities.
Mowat says that material and energy sectors are likely to see more strength moving ahead and emerging market issues such as inflation will ease out.
I think the fundamentals have improved markedly in the last quarter and equity markets, which did very badly last year, are recovering and we are at the early stage of that recovery.
The Indian markets have had a rally of 20% from the 2011 lows. That is not a reason to take money off the table. You take money off the table if you believe that the fundamentals are going to be deteriorating.
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