Jitendra Sriram, MD & Head of Research at HSBC India expects a 50 basis points rate cut by RBI through the year.
Jitendra Sriram, MD & Head of Research at HSBC India says the house is more positioned towards equity markets at this juncture because we are a cusp of recovery. He expects equities to give better returns than debt markets in 2015.
In 2014, debt was a big play because India was probably the only market amongst emerging and Asian markets with higher interest rates. However in 2015, rates could move higher globally and soften in India.
He expects a 50 basis points rate cut by RBI through the year. Meanwhile, US Fed is also likely to hike rates by Q3 of 2015 because the US GDP growth is more conducive for a rate hike, says Sriram.
According to him 2015 is going to be an earnings tracker and India is likely to grow in mid-teens
For the upcoming year, the house would focus on industrials and metals space because he thinks industrials is a big play on the IIP recovery. Metals too could see recovery post coal auction etc, he adds.
He is also upbeat on the utility space and sees telecom consolidating with the return of pricing power.
According to him there could be lot of money rotation in the defensive space.
More to come