The market has had a good run of late, but Sridhar Sivaram, managing director at Morgan Stanley Investment Management, is still circumspect about whether the worst is over.
He feels global events need to be watched very carefully. "We are cautious on markets at the moment," Sivaram said. The US is keeping its cards closed ahead of the G20 summit this week, not commenting on the role of the IMF in the Euro debt plan. As a major IMF debt holder the US holds a lot of weight in whether the fund will make a bigger contribution to the bailout. Meanwhile, the US Treasury said that greater currency flexibility from China and emerging markets will be reviewed by the G20 this week. In this backdrop, the US markets finished near session lows on Tuesday, amid renewed concerns over the European debt crisis, but logged some record gains for the month. The CBOE volatility index jumped near 30. According to Sivaram, market are pricing in lower growth for next year. "There could be consolidation in the markets post the short covering rally.Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
