With the sell-off and outflows in emerging markets following US elections and dollar strengthening, valuations have become interesting again, says Lucy MacDonald, Chief Investment Officer, Allianz Global Investors.
As of now, global investors are a bit cautious on India because they don‘t understand the risks and therefore are unable to plot for the short-term, said Nick Parsons, Head of Research, UK & Europe, National Australia Bank.
The underperformance for the Indian market will continue on back of policy (GST) concerns and uptick in inflation, says Ian Hui, Global Market Strategist at JP Morgan Asset Management.
Lewis Alexander, MD & US Chief Economist at Nomura does not expect the Fed to give a strong signal today and thinks it is likely to delay rate hike till September.
According to Jahangir Aziz, chief economist, JPMorgan low crude prices would be a massive positive for Indian current account deficit, even if it were to trade at USD 80/barrel.
In an attempt to resurrect the practice of drawing dollars from NRIs, foreign banks will provide upfront financing for wealthy NRIs and attract them to place bulky dollar deposits.
The rupee was expected to start on the back foot today because of the dollar strength versus emerging market currencies, but nobody was quite prepared for this kind of a fall in the rupee. RBI steps are not working as the rupee hit fresh lows and maybe now the market is tightening its belt for more tightening
Moses Harding of IndusInd speaks to CNBC-TV18 that the rupee was depreciating due to dollar strengthening and weak global equity. He added that the crude oil prices pushing beyond USD 100/barrel is fuelling the fall.
The Indian rupee was trading at 56.22/23 per dollar; its weakest since July 25, 2012. Dealers believe appreciation of American dollar and weak opening in domestic equity market have put pressure on the rupee.