India should be a bright spot in 2019 due to its earnings growth, says HSBC's Tushar Pradhan

Tushar Pradhan, CIO at HSBC Global Asset Management, is of the view that 2019 will be good for emerging markets and within the EM pack, India should be a bright spot due to its earnings growth.

"In 2017, everyone made money across all asset classes, while 2018 was not good for asset classes but 2019 is likely to be good for EMs and within that India with its earnings growth potential should be a bright spot," said Pradhan in an interview with CNBC-TV18.

He said, "Most economic cycles begin with significant capex drive and that could be the case with India as well but the economy is also incorporating a lot of services inside of its economy."

According to Pradhan, "NBFC segment also continues to be a strong leg in terms of how our economy shapes up in the future."

Talking about the slowdown seen in the auto sector, he said, "It is basically about consumer discretionary/consumption, which is a strong vector for the Indian economy. So while these cyclical moves in terms of stock prices, even earnings will continue to be a problem in short-term. One has to realize that the sheer penetration level and demand that exists in this country far exceeds whatever we have today on table." The house is positive on the auto space.