Published on Fri, Mar 19, 2010 at 12:31 | Source : CNBC-TV18
Updated at Mon, Mar 22, 2010 at 10:00
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Mkts to trade sideways for a while: Macquarie
Macquarie Capital Securities has a positive bias on India and sees the US economy improving. In an exclusive interview with CNBC-TV18, Mark Matthews of Macquarie Capital Securities said Indian markets should continue to trade sideways.
Q: If you have to highlight one central risk to markets in the second half of 2010 what would it be? Would it be the prospect of rising inflation or faltering growth?
A: There are number of things but I think this whole issue of government deficits is outstanding and so Greece has gone away now for now but they have to refinance 20 billion euros in April and May and they got to refinance something like an equal amount of that before the end of this year. We know that other countries are very high fiscal deficits too. The UK has fiscal deficit as a percentage of GDP at 12%-its same level to the Greece.
So that's one issue. I think there is still a lot of government debt out there-people have borrowed more than what they should and they got to find the way to rectify that.
The other thing I think is inflation. I think the inflation in China does remain uncertainty and we just have to wait and see what happens there.
