Jonathan Schiessl likes Indian banks, says IT may underperform. Here’s why

Indian markets are becoming attractive after a dip in performance compared to other emerging markets, says Jonathan Schiessl, Deputy CIO of Westminster Asset Management. IT stocks have held up and the broader market is now undervalued, particularly in regard to Indian banks which benefit from good regulation and high quality franchises. The financial sector globally is under a lot of pressure, but Indian banks are domestically focused and have little overseas operations, shielding them from most of the issues affecting global banks. Old business models in IT sectors must adapt to the current financial crisis for their earnings to improve.