Since January 2011 sell-offs in emerging markets have been huge. And if experts are to be believed, this is set to continue going forward. John-Paul Smith, global emerging market equity strategist of Deutsche Bank expects a 5-10% downside for these markets in times to come.
"Monetary tightening across emerging markets will feed into lower growth," he reasons. He expects another 75 basis points rate tightening by the Reserve Bank of India and as a result he sees more corrections here going forward, he told CNBC-TV18 in an exclusive interview. However, he was qucik to add that India is probably one of the better-placed emerging markets in terms of structural outlook assuming commodity prices come down. "Also, we might expect to see some more progress in government reforms over the medium and long-term. And that will be the driver of the Indian market." Also Read: Nomura India expects another 50 bps hike in policy rates Below is a verbatim transcript of John-Paul SmithDiscover 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!
