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Last Updated : Mar 07, 2014 02:21 PM IST | Source: CNBC-TV18

India stands out within EM pack; stay invested: Kidwai

The big positive has been the current account deficit hitting a 4 year low, she said, adding, rising exports is an important trend. Going forward, she feels the policymakers should work on agricultural productivity.

Naina Lal Kidwai, Director, HSBC Asia Pacific & Country Head, HSBC India advises investors to stay put in the market despite the recently stellar run up. However, she expects some volatility in the market due to the upcoming general elections.

She says India is currently standing out within the emerging market pack.

The big positive has been the current account deficit hitting a 4 year low, she said, adding, rising exports is an important trend. Going forward, she feels the policymakers should work on agricultural productivity.   

Below is the transcript of Naina Lal Kidwai's interview to CNBC-TV18's Reema Tendulkar and Ekta Batra.

Reema: Do you see this market rally sustaining and if it is a bit of a pre-election rally how much further can it go; can it add on say perhaps a 10 percent from hereon?

A: I am hardly a crystal ball gazer on the markets but as I see it we have got an economy, which is right now in a situation where it is awaiting results of elections. It is great that we have seen this rally as you term it a pre-election rally; I don’t know quite what it is based on but the election is something which is out there, brings some volatility into the market and there I say that the result of the election will have some effect.

I guess the expectation right now is that there will be a government that will form a government that will form with sufficient support from partners that will allow the economic progress of the nation to go forward and that is what we all hope for and that is possibly what this rally is indicating. However, the outcome is yet to be seen.

So, I would say for those that trade in the markets right now and have a strong stomach stay in there and invest but the volatility is something that clearly has to be factored in.



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First Published on Mar 7, 2014 02:21 pm
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