The first of those two events is the federal budget on Saturday, which he said could act as a positive catalyst by offering measures to boost consumption and by sticking to the path of fiscal consolidation.
Vivek Bhutoria has been bearish on Indian stocks for three quarters. The Federated Hermes money manager is now keen to see if two major policy events due within the next seven days give him reasons to change that view.
“We are in a wait-and-watch mode,” said Bhutoria, who manages about US$2.7 billion ($3.66 billion) in assets across emerging markets. “In a way, India is in a perfect storm: slowing growth, tight liquidity, a weakening rupee, foreign outflows on dollar’s strength, weak earnings and high valuations.”
