Liquidity will remain sluggish for EMs, says Barclays Cap

Peter Redward of Barclays Capital feels that global markets are unlikely to take the Greek default situation well. He says the impact of a Greek default scenario already factored in by markets. "The markets are concerned about spillover impact on Ireland, other European Union (EU) economies of Greece defaulting," he says.

Disorderly Greek default may spark loss of trust: StanChart
Redward says liquidity will continue to be slow in emerging markets. He expects to see much slower capital inflows into Asia in the near-term. "I think the liquidity situation will remain relatively easy in developed world," he says.
Commenting on India, Redward says, the strong track record of the country, in terms of return on equity (RoE), will show through eventually. "India's fundamental growth prospects are extremely strong," he says
His top picks currently are crude, copper and coal. Below is the verbatim transcript of the interview. Also watch the accompanying video. Q: India had a scare on Monday that some investors investing out of Mauritius may have to pay more taxes which brought the markets down. Do you think that valuations or prices are needed to be pulled on anyway? The markets had not reacted to the fresh inflation number that came in last week which was uglier than most people expected. Do you think that these are warranted levels?
A: Given the global backdrop, I think so. We have become more positive on the Indian markets over the last few weeks looking for them to no longer be a major source of underperformance. India is moving more inline with other markets now.
With ongoing Greek