As the India currency is on a downward drive, any hopes of investors coming back can possibly be done away with. In an interview to CNBC-TV18, Mark Konyn of RCM shares that investors are pulling back from particularly those economies that see a little bit stress, due to domestic inflationary problems or any other growth concerns.
Konyn says, there is risk domination in the global markets."At times when there is uncertainty, as we saw now and there are challenges, particularly, in the Euro zone, the investors are pulling back from any type of risk assets, as seen in the last couple of trading sessions," he adds. Further, he expects ECB's buying back of bonds to give direction to Europe. And, in India, he is positive on the pharmaceutical sector. Below is an edited transcript of Mark Konyn's interview to CNBC-TV18. Also watch the accompanying video. Q: What is the sense you are getting that we are going to see some capitulating kind of moves in the European markets? Or when you look at Italian yields at 7% the politicians will already start working over time? A: There is no doubt we are now in the throes of contagion and markets are really testing to lyrical results. We have already seen markets effectively take on two governments enforce change, the next several days and weeks and maybe months are going to be significant. Q: But the repercussions of this are quite significant on most of the banking names and thereafter even on emerging markets where there are a lot of credit linkages and by way borrowing. How would you approach the emerging markets given whatDiscover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
