Mkt may do well; don't expect big FII inflow: Jeff Chowdhry

He also says that two weeks earlier, there were 50-50 chances of Greece exiting the euro but now there is 65% chances that Greece will remain in the euro zone. There is a possible of a compromise ahead of the election or just after the election.

Below is the edited transcript of his interview to CNBC-TV18. Also watch the accompanying video.

Q: How bearish are FIIs post GDP numbers and S&P scare?

A: Slowing economy and policy in action to address fiscal deficit are key factors that are worrying global investors. Today's news of possible downgrade is no surprise. From macro perspective, India really needs to improve things going forward.

Q: Do you expect more rate cuts from RBI this time around?

A: There will be rate cuts, but they may not be very significant. Inflation continuous to remain sticky. The RBI has limited options to act upon. They need to address fiscal issues and from FIIs point of view, is looking at petrol subsidies which really need to happen.

Q: How will you approach market like India now?

A: India will do reasonably well as lot of markets are oversold, but I don't think there will be huge amount of investments coming into the market unless the subsidies issue is addressed in the near term.

Q: Many global investment banks are saying that the Greek government may choose not to exit the euro on one hand and not even agree unconditionally to the Troika program, what is your expectation?

A: Two weeks earlier, there were 50-50 chances of Greece exiting the euro but now there is 65% chances that Greece will remain in the euro zone. There is a possible of a compromise ahead of the election or just after the election.