No high hopes from Obama's speech, says BofA Merrill Lynch

In an interview to CNBC-TV18, BofA Merrill Lynch Global Research's head of European equities strategy Gary Baker gave a global market outlook and how he sees India performing from hereon.

Here is an edited transcript of his interview. Also watch the accompanying video.

Q: Are the developed markets or Europe prime for a bit of bounce back in terms of the equity markets?

A: This has been a strong sense this morning. We have had a couple of good news on Germany and the constitutional court ruling, but also we have finally agreed to implement the austerity package in Greece.

Even on Italy, some further reforms have been taken today or tomorrow. Given how the oversold markets look in Europe after the falls in recent weeks, it takes a little good news to push markets quite strongly up this morning.

Q: There is a strain of outperformance amongst the emerging market basket, including India, over the last couple of days. Do you feel that money is choosing to switch to these markets for higher or better returns?

A: It