What India’s Largest Hedge Fund Is Eyeing In 2019

What India’s Largest Hedge Fund Is Eyeing In 2019

 

’Andrew Holland, the chief executive officer of Avendus Capital Alternate Strategies, is positive on India’s equity market despite multiple stock routs in the U.S.

’Developed markets will have a sentimental impact on emerging markets, but India’s fundamentals, in the very short-term, are extremely positive for the markets, he told BloombergQuint.

’India’s benchmark equity index S&P BSE Sensex has risen 5.92 percent in 2018 so far with multiple bouts of volatility owing to global trade developments, a domestic liquidity crisis and assembly elections in five states. The country is now heading into general elections in mid-2019.

“It's not like we're rushing to the market, there are a lot of moving parts. It’s going to be a volatile six months and it’s best to tread carefully,” he said, adding that there are pockets of opportunity—fast moving consumer goods and information technology stocks—where India’s largest hedge fund is looking to deploy cash.

“Beaten down stocks in the banking and auto sector are also starting to gain as sense prevails,” Holland said. “That's where you're going to make the money in the very short term.”

Here are the other key highlights from the conversation:"Here are the other key highlights from the conversation:

Low oil prices are good for deficit and inflation.

Expect U.S. Fed Chairman to be a lot more dovish

There are good opportunities to enter stocks in India

Continue to deploy cash carefully

More liquidity driven market in the next 1-2 months

Expect government to take some kind of measure In coming elections.

Happy Investing

Source:Moneycontrol.com