Last week turned out to be great for the markets worldwide. Even the Nifty rallied in excess of about 7% last week, closing at the 5,050 mark. All this cheer in the market was lead by the global peers.
Brad Durham, managing director of EPFR Global pointed out that India will fair well if inflows are positive into emerging market equities. However, he elucidated that India still tends to have the reputation among investors as being one of the more expensive markets.
Shifting his focus to the EU summit lined up for December 9, Durham said that the European governments need to come up with some kind of coordinated fiscal policy for any kind of sustainable recovery. Here is the edited transcript of his interview to CNBC-TV18. Also watch the accompanying video. Q: We have seen a block buster rally. The US markets rallied in excess of about 7-7.5% and it was a gain of about 11% last week for the European markets. Is there more in store? Can the Santa Claus rally continue?
A: These rallies will be very powerful and are sentiment driven. We have not seen a real powerful surge of inflows from investors into the funds that we track. But, this might mean that some of the recent performance, mainly in equities, will get strong inflows in the coming weeks.
There is a possibility of a very strong interference that has been supportive by pressure of the policy initiatives by central banks. We hope that some there would be some policy resolution in Europe as well. Q: What sense do you get on this EU summit which is lined up on December 9? There is a lot of expectation and optimism going into that.
A: We had a number of meetings among European policy makers, where there has been an announcement and expectation on the decision made. It was may be a little more slippery than expected and bond yields in Europe rose to unsustainable levels.
There are probably mixed emotions by investors on the summit meeting. The expectation that the European governments can come up with some sort of coordinated fiscal policy is necessary for any kind of sustainable recovery. Q: You also pointed out that you haven
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