India faces low downside risk

New York: India's financial market faces low downside risk from coronavirus' impact on supply chains, will instead continue trading on domestic triggers and the current global health scare represents a "buying opportunity", according to Luis Oganes, JP Morgan's head of currencies, commodities, and emerging market research.

"I would say that the things to watch are the turning point in the coronavirus episode, I think that it can lead to a big rebound in emerging market equities," Luis Oganes said in New York.

Oganes is predicting that the next few months are going to be "very interesting" for markets and recommending investors turn to local currency bonds. Emerging market central banks may cut interest rates further and the dollar will remain strong, he said.

Asked how the cocktail of downgrades, coronavirus and supply chain disruption affects the India story, he said, "If anything, there's something positive coming from lower oil prices, which India imports."