India suffering from short-term problems on growth front, says Geoff Lewis

Geoff Lewis

Global Strategist - capital markets | Manulife Asset Management

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In an interview to CNBC-TV18, Geoff Lewis, Global Strategist-Capital Markets Group at Manulife Asset Management spoke at length about global markets and India.

We had a lot of good news but as long as the global economy continues to do well, inflation remains low and we do not see a strong backup in US treasury yields. The market does have strong support, said Lewis.

"We had some good news on the policy front with Mr Abe's (Shinzo Abe) victory in Japan and also with things going quite well for Xi Jinping in China. So politics is looking better, the economy is doing well, valuations are rich but the markets are reasonably well supported at the moment," he added.

Talking about US, he said Trump's tax reforms were not priced into the market; there is still a long way to go.

He further said that the things driving the equity markets is not US tax reform; it's the strong global economy.

According to him, India is suffering from the short-term problems on the growth front due to teething problems with goods and services tax (GST) and the lagged effect of demonetisation.

Therefore, need to see some signs of the economy picking up a bit and improvement in earnings upgrades, he said.