Mkt sentiment intact; equities to march ahead: Mark Konyn

Even as the world awaits the verdict on Greece, which may cause a short-term pullback across equities, independent strategist Mark Konyn believes that there is still a lot of steam left in the markets.

Konyn added that there is more money flowing into emerging markets. There is a lot of momentum since the beginning of this year, which expresses itself into fund flows. However, he feels that India may lag behind on account of macro economic concerns. On a sector-specific note, he is positive on infrastructure.
 
Below is an edited transcript of his interview. Also watch the accompanying video. Q: Earlier on, you had mentioned that you expect this rally to continue but is it getting to a stage where enough is enough, do you think it will start meeting with some kind of obstacles even if the Greek problem was resolved? A: There is no doubt as news comes out of Greece, it will cause a short-term pullback. But I don't think we are at that point yet where this rally has run out of leg, so there is still more good news, news that is perceived to be positive by markets will drive sentiment for long. As I commented before, investors are looking to hang on the back of any good news and we have seen the job market improve in the United States. We haven't yet seen the income growth accompanied that flow through the consumption growth. But there are expectations that it will and I think investors are starting to discount that and as a result sentiment globally is improving. So, in spite of this, there seems to be a little bit of cautiousness at the final stage of the Greek agreement, no doubt in my mind, at least the markets will continue to move forward. Q: What about the potential good news combination - Greece is muddling through with some bit of political agreement and the ECB is pumping in almost 1 trillion euro, we understand, in the next tranche of LTRO. Are you looking at some significant upside if this combination happens? A: Certainly, the LTRO has been the saviour, the ECB taking the initiative, which has alleviated the concerns coming into the end of last year and beginning of this year in terms of liquidity crises in the banking system. It has allowed the sovereign debt problem across the continent to be mitigated to a large extent, and largely indebted nations, economies that have been able to come to the market and raise money at better rates than what otherwise has been the case. So, the effect of the LTRO and the target too for that matter has been positively received by market and it has been the saviour. We have got the ECB meeting coming up with statements; like today, we have the Bank of England