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India best story among EMs; prefer cyclicals: JP Morgan

Adrian Mowat, chief Asian economist, JP Morgan says he prefers the Indian market among other emerging markets (EMs) and believes it’s the most compelling story among the BRIC nations too (Brazil, Russia, India, China and South Africa).

Despite the current weakness seen in the market, India continues to be a favourite for Adrian Mowat, chief Asian economist, JP Morgan.

Also read: See further mkt fall; BJP bypolls defeat aided bears: Mehta

Speaking to CNBC-TV18, Mowat says he prefers Indian market among other emerging markets (EMs) and believes it’s the most compelling story among the BRIC nations too (Brazil, Russia, India, China and South Africa).

Mowat says the markets are likely to rally further as he sees a significant fall in inflation in the next year.

“I see inflation trending downwards in the next CY 2015. If brent crude prices continue to fall, we might even see fuel deflation. So there’s a lot going in favour of inflation reduction and economic acceleration,” he says.

Hence, his stock picks remain cyclicals and he believes any weakness should be used to buy into the stocks. He is long property stocks, consumer discretionary and auto, but prefers avoiding pharma and IT stocks. 

Transcript to follow soon.

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