Thanks to RBI governor Raghuram Rajan’s policies, India is well-placed among all the emerging markets

India is well-positioned in the emerging market basket and has done the best things in terms of economic policies among the BRIC nations, said Mauro Ratto, head of emerging markets at Pioneer Investments, adding the country is harvesting good governance of Reserve Bank of India's governor Raghuram Rajan.

There is very good synchronised action between makers of fiscal and monetary policies, and the result has been awesome, Ratto told ET.

Explaining why the county is better placed, he said that the inflation has fallen sharply, the currency is quite stable, and the economy is very resilient.

At the same time the investments and consumption are also picking up. However, the pace of government reforms is slow but the best part is — it's happening compared to many emerging countries where there is no reform push.

He said: “India is enjoying the benefits of falling commodity prices but more than that I would give credit to the monetary authorities for managing policies so well.”

On being asked to comment about sectors that is making him bullish at this point of time, he said: “We have positive view on consumption sector and have lot of exposure to this space. We remain positive on some of the cyclical names and select midcaps. We are also looking at financials as valuations are attractively priced and have top-down approach to our portfolios, while remaining active in stock selection, because active stock participation has always given higher returns than passive index investment.”

Being asked whether the worst is over in commodity space, he said: It's difficult to say whether the worst is over for commodity stocks, but from long-term trend we are not very far from the bottom. I still believe there could be higher demand for crude oil, while copper prices are expected to recovery from its lows.”

(Image: Reuters)