Indian Stocks Will Draw Investors Amid Global Gloom, Says Mirae Asset’s Rahul Chadha

The Indian equity market will emerge as a key investment destination due to the country’s higher growth rates compared with the global economy, according to Mirae Asset Global Investments Co.’s Rahul Chadha.

Central banks offered excess stimulus at a time when there were supply bottlenecks and workflow problems from pandemic-led disruption, Chadha, chief investment officer at Mirae Asset Global Investments, told BloombergQuint’s Niraj Shah in an interview. These issues are playing out now as the world is opening up, he said.

For the last nine months, central banks got flak for being behind the curve and “are now acting or being forced to act when things are slowing down”, he said.

Chadha expects “a U-turn in six to nine months from central bank policymakers”. They will switch from worrying about inflation to focusing on growth, he said. Market volatility, he said, will persist during this period.

According to Chadha, parts of China are going through a lockdown, U.S. GDP growth could slow down, Europe is under turbulence due to the Russia-Ukraine crisis, and the global economy is suffering from higher commodity prices. As a result, he said, the Indian market will emerge as a destination for investment because of higher growth.