US recovery may strengthen dollar: CLSA

Here are some of expert views on how the equity market is expected to behave in the near term:

Russell Napier, CLSA said that, "With the expectation of a pick up in US recovery, yields will rise which will strengthen the dollar. This will make emerging market bonds, which have been witnessing a one way flow over the last many years, less attractive. This EM flow would reverse and be painful to holders of EM bond funds." Bhuvnesh Singh, Barclays said that, "Government's legislative agenda is bereft of further economic reforms with only lip service to improvements in bureaucracy. Given the high political uncertainty, investment cycle is unlikely to revive, which drives our negative calls on industrials, PSU banks and materials."