The outcome of the second round of Long Term Refinancing Operations (LTRO) will be important for equity markets, but issues other than LTROs will drive sentiment in the medium term, feels Ian Scott of Nomura.
Nomura's Ian Scott feels things are looking up again, though some concerns remain. He's hopeful of better days to come in emerging markets, but thinks valuations in India may be slightly on the higher side.
Chris Wood of CLSA feels that Asia will still remain correlated negatively to any further risk aversion, including a stronger dollar.
Ian Scott, global head of equity strategy at Nomura has upgraded emerging markets to "overweight" from the earlier "underweight" rating. Speaking to CNBC-TV18, Scott said, major risks in global economy and financial system has been priced in by the market. "The global backdrop improving barring Europe," he pointed out.
EM equities have underperformed their developed market peers in recent weeks. But fund flow is likely to moderate further, says Ian Scott of Nomura.
Financial markets worldwide have seen a sharp recovery in the past week. Ian Scott of Nomura tells CNBC-TV18 that he believes markets will bounce even further. However, he doesn’t think that India will outperform other markets.
In an interview on CNBC-TV18, Ian Scott of Nomura says he is still underweight on India and emerging markets (EMs).
Given the proximity to the end of QE2, and the fact that sentiment may unwind further, we suggest a cautious approach in the near-term.
The overall performance of the Indian market has left a lot to be desired. Caution – that's the alarming word coming from Ian Scott of Nomura who finds India expensive to its emerging market peers.
Given the intensifying macro headwinds, political uncertainties and downside risks to earnings, we believe there might be further downside to Sensex, says Manishi Raychaudhuri of BNP Paribas.
In an interview with CNBC-TV18, Ian Scott, Chief Global and European Strategist, Nomura says, the recent rally in emerging markets (EMs) globally is primarily a reaction to the sharp underperformance that they saw earlier in the year. “I think the fundamentals in EMs remain somewhat uncertain. I think it’s too soon to be upgrading EMs,” he adds.
Despite the worries, the emerging markets have managed to recover. However, Ian Scott, Chief Global and European Strategist of Nomura feel that it is not time to upgrade emerging markets yet.
In an interview with CNBC-TV18's Udayan Mukherjee and Mitali Mukherjee, Ian Scott, global head of equity strategy at Nomura, said the valuation gap between India and other emerging market needs to narrow down.
Crude oil prices have been ruling markets globally, but foreign institutional investors continue to cold shoulder emerging economies, including India. Ian Scott global head of equity strategy with Nomura says he prefers developed markets to emerging ones.