India is paying price for repeated failure to fix banking system: Jan Dehn

London-based Jan Dehn, head of research at Ashmore Investment Management,says he is not bearish on Indian equities and the current problems in India are cyclical, but the banking issue

As the September 2019 quarter results season gets underway and investors fine-tune their market exposure, London-based Jan Dehn, head of research at Ashmore Investment Management, tells Puneet Wadhwa that he is not bearish on Indian equities and the current problems in India are cyclical, but the banking issue. Edited excerpts:

• What’s your view on equities?

Emerging market (EM) equities are cheaper and supported by a better outlook than developed market equities. Investors in US stocks, in particular, are sitting on very big positions in very expensive stocks. They are holding out for the US Federal Reserve (US Fed) to cut rates as