India may outperform towards 2011-end: Deutsche Bank

John-Paul Smith, Global EM Equity Strategist, Deutsche Bank in an interview with CNBC-TV18 gave his reading and outlook for the global and Indian markets.

He said that though their economists in the US are relatively optimistic about the economy this year one may see quite a lot of headwinds coming from there in the medium-term. He further said that QE3 or monetary easing is unlikely as it may lead to another round of commodity price increases and that issue has become politically toxic in the US. Citing his view on the Indian market he said that the investors are closely eyeing Indian government's action on major reforms like reduction in subsidies, inter reduction of goods and services tax and liberalisation of FDI. If the Indian government is able get some of these reforms through parliament and implement them then, we could see some outperformance by India as we move forward to the end of 2011. Also Read: Gold, copper to shine; avoid crude & aluminium, say experts Below is the verbatim transcript of his interview with Udayan Mukherjee and Mitali Mukherjee of CNBC-TV18. Also watch the accompanying video. Q: Do you think the Greek issue has been resolved to the comfort of equity markets globally? A: It is for the time being. The EU appears to have passed the Greek issue a little bit further down the line. In other words the solution they have reached is probably an interim one but for the time being it is enough anyway to satisfy the markets. But none of us can guarantee that it won