The global markets appear to have stabilised and that has boosted share prices in emerging economies like India. The Budget was also a positive for the markets, as the Centre stuck to the FRBM path.
Speaking to Bloomberg TV India, Kotak Mutual Fund’s Head of Equities Harsha Upadhyaya sounded a note of caution, saying the worst is yet to be over and the volatility in the markets is likely to continue for some more time. There is a chance of another rate hike from the US Fed in the next couple of months, he said.
We have been watching the twists and turns in the global markets over the last couple of weeks and the latest trends seem to point to a reversal or perhaps a pause on the global growth concerns. How are you viewing the recent developments?
About a week back, I think there was too much of pessimism just around the Budget and the likely introduction of the capital gains tax. There was also anxiety in terms of what the government policies would be.
Along with that, the global markets were also quite weak at that point of time. Post Budget, there has been some amount of stability in the markets until today. If you look at the currency, commodities or equities, every market has stabilised a little bit over the last seven to 10 days. I would say that India also participated a little bit in that trend.
Now the global cues are once again turning negative. So I don’t think the worst is over and we will continue to see volatility through the markets for some more time.
