Julius Baer sees market correction in India as a buying opportunity – CNBC TV18

India remains a fundamentally strong market and continues to attract investments. “Should there be a correction in India on a global cycle, it is all the more reason to buy a little bit more of India,” said Bhaskar Laxminarayan, CIO and Head of Investment Management Asia at Julius Baer.

He believes the Reserve Bank of India’s (RBI) decision to maintain its monetary stance while easing the cash reserve ratio (CRR) is appropriate. Laxminarayan also expects a potential rate cut by the RBI in case of an economic slowdown, possibly during the April-June 2025 quarter or in March.

On corporate earnings, Laxminarayan expects stronger results in the upcoming season. “This gives hope to people and adds a little bit more momentum in India,” he said

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Large-cap stocks in India are reasonably priced compared to the United States, where they appear expensive, he added. And midcap and smallcap stocks are cheap in the US but not in India.

On the US Federal Reserve’s policy, Laxminarayan suggested that a rate cut might not be imminent. “Our read on the markets over the coming four to six quarters is that there is a higher chance of inflation than recession. There’s no sign of a recession. If the markets and economy are doing well, you might get some stress in pricing, leading to inflation. Why cut rates aggressively?”

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Laxminarayan sees China as a market with significant value but warned against long-term commitments.

“You play into the policy buffers that you are going to get and therefore, it is a trading market,” he said.

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