According to the global financial services major, emerging markets are under pressure as investors re-assess the risks amid monetary policy normalisation in developed markets, trade protectionism and China's economic slowdown.
In an interview to CNBC-TV18, Mark Matthews of Bank Julius Baer & Co spoke about the latest happenings in the global markets.
In a CNBC-TV18 interview, Adrian Mowat, MD & Chief EM Strategist, JP Morgan shared his outlook on the market. He also spoke about how the Indian economy has fared in three years of Modi’s rule.
Since the start of this year, the rupee has had a steady appreciation in line with other emerging market currencies, Kotak Institutional Equities said in a research note.
Globally, the assets under management of the hedge fund industry stood at an all-time high of USD 3.018 trillion and investors are forecasting a 3.5 percent increase in new inflows during 2017.
The adoption of the GST could help raise India's medium-term GDP growth to over eight per cent and create a single national market for enhancing the efficiency of the movement of goods and services, the IMF said today.
It seems the glory days are back for the dollar. The greenback rose to a three week high on Monday all thanks to US President‘s promise to cut taxes to encourage corporate profits and investments. The dollar has gained strength in the past few months and the dollar index has breached the 100 point mark.
Nonresident investors cut inflows to emerging market assets to USD 28 billion in 2016, with debt portfolios recording substantial outflows, the Institute for International Finance said.
REUTERS - Non-resident investors have pulled a total of USD23 billion from emerging market portfolios since early October, a survey released on Tuesday showed, including USD18 billion since the U.S. presidential election.
India is seen as better equipped than its other emerging market peers to weather the impact of higher US interest rates because of its stronger economic growth and record high foreign exchange reserves of more than USD 300 billion.
The implications for markets appear to be further increases in bond yields, developed world stocks and the dollar, while emerging market currencies, stocks and bonds are expected to struggle under the weight of higher US bond yields.
India's 10-year government benchmark has fallen to 6.19 percent, below the central bank's repo rate of 6.25 percent, on expectations of a 25 bps-50 bps rate cut at the December 6-7 monetary policy committee meeting. The two have converged only three times in the last decade, according to banking analysts.
Watch the interview of Manoj Rane of BNP Paribas India with Manisha Gupta on CNBC-TV18. He spoke about the strength of the dollar and how it will impact the Indian rupee and other emerging market currencies.
Speaking to CNBC-TV18, Ray Farris of Credit Suisse said that the rupee in the emerging market basket of 20 currencies which he covers is relatively strong. The Indian rupee has fallen by over 2 percent since November 8, but it is the best performing currency among the 20 currencies he looks at, he said.
Qi Gao, FX Strategist at Scotiabank tells CNBC-TV18 the strengthening of US dollar versus emerging market currencies is due to Trump's pro-growth stance. Trump's promise to accelerate fiscal spending on infrastructure has raised inflation expectations which means possibility of rate hikes, Gao says.
Expect next 18 months to be good for global equities, says Rahul Chadha, Co-CIO at Mirae Asset Global Investments (HK) Limited.
Jan Lambregts, Rabobank says a Federal Reserve rate hike seems unlikely in November. They may shy away in the last minute. But the Fed may hike rates in December by around 25 basis points which he senses may not lead to any global market imbalance.
The fund is available on London Stock Exchange (LSE) and Deutsche Boerse. The LAM ZyFin MSCI India UCITS ETF offers investors exposure to Indian equities, denominated in US dollars.
According to Morgan Stanley Investment Management, emerging market growth outlook is likely to remain subdued on aggregate, but countries are expected do see "diverging" paths.
Negative interest rates is not only hampering global growth but they are here to stay and won‘t be going away anytime soon, said Luis Oganes, Chief Economist, JPMorgan.
GDP growth forecast for India has been maintained at 7.5 percent, says Marie Diron, Senior VP - Sovereign Risk Group, Moody's Investors Services who believes India now looks relatively less vulnerable than earlier.
Speaking to CNBC-TV18, Sunil Garg of JP Morgan Securities says the best among EMs currently is relatively cheap China, which is reversing its downward trend. Relatively, India has been underperforming the other EMs.
Dollar debt issued by firms from riskier and less developed countries has been among the year's best performing assets, yielding more than 11 percent, according to JPMorgan's emerging market (EM) corporate debt index, the CEMBI Broad.
In near-term, correction of 20-30 percent in global equities is expected, Michael Every of Rabobank says.
Global push along with a robust monsoon and GST Bill possibility, Manish Gunwani of ICICI Prudential expects the Nifty to grow by 15-20 percent in FY17.