While markets are likely to remain hostage to developments in Europe in the near-term, Michael Kurtz of Nomura sees clear signs of improvement in the broader environment for Asia.
Typically, recession-linked bear markets for last 16 months, so far this one has lasted only five. The typical sell-off amounts to 43% Vs 21% decline till date.
economic indicators appear to support the fast-vanishing growth momentum across the developed world, says Emil Wolter of RBS.
Surviving in this bad weather has not been easy. While some lost strength, others were bold and strong to face it. Experts though feel that the pain is here to last but many see valuation in this downturn too.
Emil Wolter, Head of Regional Asian Equity Strategy at RBS expects to see another round of quantitative easing.
The Sensex shut shop at 17,560, with a 53 point gain despite stable global markets. Experts see a new rally starting from August. They also believe that India remains a great market for stock-pickers as its fundamental growth prospects are still extremely strong.
Global investors continue to be troubled over the news flowing from the US and European markets. Emil Wolter, Head of Regional Asian Equity Strategist at RBS says that Indian investors need to be prepared for more foreign investment outflows in the near-term.
Emil Wolter of RBS sees market volatile in the near-term due to confusing macro economic dynamics in India. "This has seen the market starting and stopping quite a bit." While he still holds a cautious call, he sees a significant correction in the Indian markets in the next couple of months.
In 2004, GEMs rallied strongly in the second half of the year as inflation peaked with MSCI EM Index rallying 28% from the lows to year-end.
In an interview with CNBC-TV18, Emil Wolter, Head of Regional Asian Equity Strategist of RBS said, "Money is attracted to emerging markets for a combination of different reasons. The strength from the balance sheet that is, the level of indebtedness is much lower and the ongoing fiscal deficits are also much more containable."
Though experts are betting high on Indian market, Emil Wolter, Head of Regional Asian Equity Strategist, RBS holds a different view. He feels that India still has concerns of inflation and current account deficit weighing on equities.
Emil Wolter, Head of Regional Asian Equity Strategist at RBS told CNBC-TV18 that the fiscal deficit in India has become very challenging and that he sees the fiscal deficit touching 7% if crude continues to remain at elevated levels.
There is little to suggest that global growth trade is faltering, says Robert Buckland, Citigroup.