Moneycontrol
Oct 12, 2017 08:55 AM IST | Source: CNBC-TV18

Series of earnings downgrade & GST woes are concerning foreign investors: UBS

Markets are 70-80 percent sure of a US Fed rate hike in December, Geoffrey Dennis, Head-Global Emerging Market Strategy at UBS told CNBC-TV18.

In an interview to CNBC-TV18, Geoffrey Dennis, Head-Global Emerging Market Strategy at UBS spoke about his reading of the market and his outlook.

Very low cost of capital has been helpful so even though the Fed is looking like it wants to move again in terms of interest rates in December, long-term bond yields are relatively low. That is what is creating this favourable environment for equities, he said.

On India, he said that India is in a slightly difficult situation at the moment.

It is a long-term structural overweight. Series of earnings downgrade, weak gross domestic product (GDP) numbers, demonetisation and goods and services tax (GST) woes are concerning foreign investors, he added.

He thinks it is a blip down and the market will continue to do well over the long-term, said Dennis.

Markets are 70-80 percent sure of a US Fed rate hike in December, he further mentioned.

For full interview, watch accompanying video...

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