Emerging markets aren’t all the same during an energy crisis

Mugunthan Siva of India Avenue Investment takes a brief global detour today, discussing concerns about inflation, interest rates and energy prices as the risks build from the Russia-Ukraine conflict. He remains fully invested, but managers are always trying to find winners and losers. So how does all the above impact the outlook for India? While stock markets and the rupee have been weak, so far the region isn’t an underperformer. Any market with commodity influence has performed well, such as Latin America and Australia. Despite having a strong India focus, he says this could be a year to favour Australian assets and take advantage of a rising AUD from improving terms of trade. Some foreign markets will continue to do well, and in time, India will have found a base once oil prices have settled.