Mark Tan Keng Yew, Director of UOB Asset Management said that they are positive on India. "But I have selectively increased my weight in the industrial sector after the sharp price correction over the past month," he told CNBC-TV18.

Excerpts from CNBC-TV18’s exclusive interview with Mark Tan Keng:

Q: How have you read first the crude concerns and how that might impact interest on a market like India?

A:  There is a concern over global food prices. But I believe that it’s going to correct again at some point of time when more food production comes out and we see signs of that happening. Crops are going to be planted for the next year. So once that happens, there would be a correction in food prices. But right now, costs are going to see a bit of upward shifting because of the tight supply. In near future, it should come down to reasonable levels again.

Q: We are hearing about cash commitments lying quite low for most investors right now - is that the sense you are getting as well that money is not being committed right now to any market?

A: Not really. People are putting money back into emerging markets again. So cash levels were a little bit higher in the last month. I think there is more financial stability coming in from the US, people are putting a lot of money back into the emerging markets. For example, we have seen Brazil at an all time high and so is the case with Russia because they are commodity producing countries so there is more tolerance on this now.

Q: One word on India in specific and whether you have made any tactical changes in this market?

A: Not a lot. But I have selectively increased my weight in the industrial sector after the sharp price correction over the past month. So I still continue to be reasonably positive about the market since it is going to be underpinned by very strong infrastructure spending and growth going forward.

We are looking forward to a moderation in  inflation pressure over the second half of this year and next year as well, that should be definitely strong driver for the market.

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