Flows will return to India in H2CY11: Deutsche Bank

Foreign investors of late have been wary of putting money into India. But this trend will change in the second half of 2011, says a confident Dixit Joshi, co-head of Asia equities at Deutsche Bank. He sees the flows returning to Asia and India in the second half of this calendar year on the back of controlled inflation.

"Currently, global equities are in a risk-off environment, and, the US debt ceiling has issued weighed heavy on global sentiment," Joshi explained. Also Read: Strong positive flows seen in India post Q1 says BofA ML Below is the verbatim transcript of his interview with Udayan Mukherjee and Mitali Mukherjee of CNBC-TV18. Also watch the accompanying videos. Q: What is it that you expect to see both from global markets in terms of rub-off effect for us in the second half? A: First lets reflect on events from yesterday. Greece has been weighing on the markets for sometime, we all have been expecting this announcement with abated breathe. First and foremost lets looks at the market reaction, we have seen credit spread come into some extent, we have seen euro dipped by a couple of figures yesterday but rallied back to almost 144. So we have seen really good reactions from the markets around this package. The package has attempted to do is number of things; one, specifically with regards to Greece the number was in the region of 109 billion euro, this would tight Greece over for the next three years until 2014. So that conclusively at least for the next three years it draws a line under Greece