Why stock selection is crucial in India

Xavier Hovasse, manager of Carmignac's Emerging Discovery fund, takes a closer look at opportunities for investors in China and India.

India and China are two main emerging market beneficiaries of the lower oil price.  The Chinese domestic market offers some of the best opportunities in the emerging markets spectrum. Disinflation and declining property prices will allow for monetary policy easing (the first signs are already visible with further and much-needed interest rate cuts expected this year) which should boost the appetite for investments and reduce the punitive deflationary forces. Not only does the Chinese market contain fewer monopolies than in other emerging markets, but there are a number of good quality...