Managing Director-Asia Equity Research, JPMorgan, said that in the short-term the Nifty index has moved past their target of 8600. Post GST implementation, he sees the events calendar thinning out. “I wouldn’t be shocked if we are entering a period of consolidation.” He expects about 15 percent returns from India over the next 12 months. “India is on the cusp of recovery in the earnings cycle,” he said. JPMorgan is still bullish on emerging markets. They are ‘overweight’ on EMs, he said. One of the major shifts that is happening across global markets has to do with a transition from monetary policy to a fiscal policy. “India can shine here,” he said. The market is capable of sustinaing higher valuations today than 15 years ago, he said, adding that the capacity utilisation in India is only 70 percent. He believes that there could be a return to a combination of value and yields.
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