Greek worries for Indian market exaggerated: EM Capital

Promising to abandon any austerity plans, Greece’s possible coalition government appears all set to pull the country out of the eurozone. Chances of Greece leaving the shared currency formula are at an all time high but the situation may not just yet kill the euro.

In an interview to CNBC-TV18, Seth R Freeman, CEO, EM Capital Management LLC says the situation is spiraling out of control rapidly. He, however, doesn’t see the crisis in Europe having anything to do with the troubles we are facing in our own backyard.
“The uncertainty and the unfortunate timing of the finance minister’s announcements back at the Budget and now the last 10 days have been really reeling the market which is very unfortunate,” he adds. Below is an edited transcript of his interview. Watch the accompanying video for more. Q: We have seen a big worry once again emanating from Greece, to some extent from France. Once there is political uncertainty that’s on the table there is only so much that can be done. How are you reading this situation and what do you expect in the short-term for the markets now?
A: It actually feels to be devolving more rapidly now with more drum beating about Greece basically being thrown out of the euro and although all the talk we have heard the last 18 months has I guess been what a disaster that would be. I think their colleagues are beginning to feel fed up. Q: There is another election that would be held in June in Greece. For a market like India, how much of a repercussion do you see this political development from Greece really have? Do you anticipate more pressure?
A: I don’t think that the Indian situation is specifically related to Greece or anything in Europe other than perhaps that investments allocated ex US have been pulled back a little bit. The uncertainty and the unfortunate timing of the finance minister’s announcements back at the Budget and now the last 10 days have been really reeling the market which is very unfortunate.