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Last Updated : Mar 09, 2011 03:17 PM IST | Source: CNBC-TV18

FII money key to Nifty breaking 5600 resistance: Deutsche

India still has additional challenges like mounting inflation and fiscal consolidation to deal with besides unpredictable crude prices. Munish Varma, head of global markets at Deutsche Bank India, feels that investors are cautiously optimistic on India as there are concerns about the interest rate cycle.


Domestic market, on Wednesday begun trade on a positive note as crude oil prices simmer down a bit. However, India still has additional challenges like mounting inflation and fiscal consolidation to deal with besides unpredictable crude prices. Munish Varma, head of global markets at Deutsche Bank India, feels that investors are cautiously optimistic on India as there are concerns about the interest rate cycle. However, he feels that the long-term market mood will continue to be positive.


Talking about commodity prices, he said, "Commodity prices are driven by abundant global liquidity. And, monetary tightening in the US, Europe will be a risk to commodity prices."


According to him, the Nifty may breakout of this resistance zone of 5,600-5,700 once the market gets capital commitments from the FIIs and investors.

Below is a verbatim transcript of Munish Verma's interview with CNBC-TV18

First Published on Mar 9, 2011 09:48 am