Fidelity: Indian Stocks Best as Oil and Scandals Undo Brazil, Mexico

Mexico remains a good long-term story, but lower oil prices and government scandals are hurting confidence and having a short-term negative effect on stocks, said Sammy Simnegar, portfolio manager for the Fidelity Emerging Markets Fund. Simnegar added that he is far more bullish on Indian stocks, which he says will continue to rally on Prime Minister Modi's reforms. He said investors should avoid Brazilian stocks, especially oil giant Petrobras, due to the drop in commodities and government scandals. Finally, Simnegar is cautious about Chinese equities because of the excess capacity in the country's manufacturing base.