See medium-term support for rupee on RBI moves: Macquarie

Given the market condition, there are sell positions in the market and also on the exchange rate side, measures by new RBI governor Raghuram Rajan has added support to the currency, says Richard Gibbs, Global Head, Macquarie Securities.

Things are a lot more stable and positive in terms of investor sentiment because of data from China which has resulted in reducing the concerns about capital outflow from the region, he adds. China's trade and inflation data for August have bolstered investor confidence in the world's second-largest economy. Also Read: Fed can't afford to ignore emerging markets: Lagarde Below is the verbatim transcript of Richard Gibbs' interview on CNBC-TV18 Q: Do you think this rally that started off in India has more legs because of combination of poor farm payroll numbers and slight abatement in Syria?
A: I think it does and the stronger growth we are seeing in Asia is also important typically in China. What that is doing is reducing the concerns about capital outflow from the region and particularly from the Indian markets. So, we are actually seeing stabilisation there and of course the new Reserve Bank of India (RBI) Governor, he certainly hit the ground running, the things are a lot more stable and positive in terms of investor sentiment. Q: So will you be a buyer in the Indian markets at this point in time and do you think the worst is over both for equities as well as for currencies?
A: I think there are certainly sell positions in that market and also on the exchange rate side you have to say that the measures that were announced last week by the new RBI governor that is certainly adding to medium-term support for the exchange rate and I believe that the central bank is going to more closely supervise that market overall. So I think yes on the industrial side we think pretty much sell down, also financials you would be looking to pick up value now where you have got those valuations having been reduced to very attractive multiples. Q: Does the Nifty level of 5,750 dither you or will you still look for individual stocks?
A: I am looking for individual stocks because it’s the same in most markets, we have seen the same in Europe of course where we have seen investors looking to lighten their positions there and looking in terms of value side because moving into the slowdown of course of number of stocks were in overvalued positions. So, we are not seeing that attractiveness in terms of value coming back into play and of course as you said the macroeconomic stabilizes are increasingly attractive as well.