Indian market getting over-valued. I wish it would pull back and rest a little bit: Mark Matthews
Mark Matthews, MD, Julius Baer, says he wishes there would be a pullback in the Indian market. It is becoming overvalued. Matthews further says that there does seem to be some sectoral rotation going on. In India, the growth is the opposite of what it is in the US. In the US, value is smallcaps and growth is big caps and in India, it is the other way around. I think there are a lot of emerging sectors in India that are small now but will be big sectors in the future like hospitality, defence which are in the midcap space and I would say those are the growth areas that long-term one would do well to be in.
Everything is moving on expected lines and I look at the market from the prism of the US Fed. The US Fed pretty much has said what everybody was expecting, growth is decent and rate cuts will start.
Mark Matthews: I did not expect them to be so overt in telling us there will be a rate cut in September. They did not need to because the market is already pricing one in. I felt that was interesting. There was no urgency in the statement or Jerome Powell's comments to the press but the most interesting thing is there was a sentence in the statement for two years saying that inflation was the most important criterion and that was replaced with the dual mandate of inflation, but also employment.
Jerome Powell said in the press conference said that he would not want to see the labour market cooling further. I put it all together and yes, there will be a rate cut in September, I do find it somewhat curious that they were
