Here is a verbatim transcript of the exclusive interview with Bobby Rakhit on CNBC-TV18. Also watch the accompanying video.

Q: The European market is clearly not seeing an opening boost in sentiment due to Obama’s appointment as President?

A: Europe still has some fundamental issues. The full credit crunch hasn’t fully been absorbed within the European markets as yet. We still see a steady decline in consumer spending.

This is going to clearly be detrimental to what we are seeing. I think it is great to have Obama as a President. But overall, the same issues still remain in the global markets.

Q: Do you think now that this event is over, the focus will now shift back to the ECB (European Central Bank) and what the Bank of England does come tomorrow and even going forward some of those global datapoints, the GDP data and the US contracting, we are expecting pretty flattish growth in the UK. So, will core fundamentals now be back in focus?

A: Absolutely. I think a lot of the perspective was on the election and things around it now go back to core fundamentals. When we go back to core fundamentals there are things that are occurring in the market. But we are still in for rocky times ahead.

We are going to see a little bit of a rally in Q4 of the current year. But clearly after the New Year, we are going to see that market sort of dissipating to a low. That is what I am really worried about. 

Q: What about hedge fund redemption pressure or pressure to unwind positions by year-end closing? Do you think all of that has been much done, or perhaps in December particularly at the end of the year, we would see some more pressure coming in on the markets?

A: There would definitely be more pressure. The hedge fund industry has been affected. We are going to see another insurance company possibly go down as well. We haven’t seen the bottom yet.

I don’t think it is a bad time to start positioning yourself to punch some of the valuation deals into the portfolio. But clearly there is going to be a little bit more downside in the market. We are going to see this after 2008.