Mkt rally unlikely to sustain for long: Jim Walker
Published on Fri, May 22, 2009 at 10:41 | Source : CNBC-TV18
Updated at Mon, May 25, 2009 at 14:50
Like this story, share it with millions of investors on M3
0
Like this story, share it with millions of investors on M3
Mkt rally unlikely to sustain for long: Jim Walker
Jim Walker, Managing Director of Asianomics pegs India's FY10 GDP growth at 3-5% and slightly more in FY11. He said that 6% GDP growth in FY10 was realistic but it would be difficult to achieve.
Jim Walker, Managing Director of Asianomics, while speaking to CNBC-TV18, expressed doubt over sustainability of the rally -- both in global markets as well as India. He, however, added that India remains his only holding among Asian markets.
Walker said although the large money infusion in credit markets has eased nerves, global growth will continue to disappoint for the next 2-3 years. Fiscal deficit too will remain a problem.
Here is a verbatim transcript of the exclusive interview with Jim Walker on CNBC-TV18. Also watch the accompanying video.
Q: Is the market running a bit ahead of fundamentals? A: The truth is that a lot of stock markets have run ahead of the real fundamentals in the global economy. Understandably, there was such a lot of pessimism around and people were beginning to draw straight lines in terms of downward direction of the economy, direction of markets, and that was overdone. So it is not really that surprising, there has been a bounce in markets. Whether that bounce is really sustainable and it is true that things have run up a bit far for the global stock markets as well as the Indian stock market.
