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Last Updated : Mar 27, 2019 09:19 PM IST | Source: CNBC-TV18

Expect money to flow into emerging markets: B Prasanna, ICICI Bank

Talking about global markets, Prasanna said: "As the US growth tapers off but doesn't go into recession but at the same time the forward-looking rate hikes have gone away and forward-looking rate cuts have come in."

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Finance ministry and RBI officials met on March 26 to finalise the borrowing plan for FY20, but the details of the borrowing calendar were not announced. B Prasanna, head-global markets group of ICICI Bank, spoke to CNBC-TV18 about the development.

"The market was expecting the announcement to happen post market hours on March 26 but it didn't happen. Therefore, the market will be looking for an announcement anytime today during market hours or after," said Prasanna.

"The focus of the market is in terms of what percentage of the overall Rs 710,000 crore which is a gross borrowing - that is likely to happen in the first half," he added.

"Last year, this time around, the first half borrowing was lower; they ended up borrowing around 50 percent of the overall gross borrowing number for the last year. So this year the expectation is not higher than 60 percent, anything at 60 or lower, the market has priced in and anything higher than that would be taken little negatively," he said.

Talking about global markets, Prasanna said: "As the US growth tapers off but doesn't go into recession but at the same time the forward-looking rate hikes have gone away and forward-looking rate cuts have come in. So it’s like having the best of both world; you have a decent growth scenario in the US and a lot of liquidity availability because of quantitative tightening getting reversed as well as rate cuts happening. So liquidity is going to be abundant in the global markets and within the global market space money will chase the emerging market (EM) space and within the EM space it will come to the shores of India."

Source: CNBC-TV18
First Published on Mar 27, 2019 03:31 pm
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