Shane Lee of CIMB says the expectations around India's growth is worrisome since the only way it can pick up is through investments, which at the moment looks sluggish.
The US stocks have fallen sharply and the S&P 500 extended losses into a fourth session with energy shares leading the decline
Shane Lee, Director, Economist & Strategist - Equity Research, CIMB says US equities are in for a rough ride. Since September, when the US market first started correcting, geopolitical tensions have escalated, US earnings and the scenario in Europe have been a drag.
The Federal Open Market Committee meet on March 17-18, will be the first session under the central bank's new chief, Janet Yellen.
With tapering round the corner, there is a lot of capital outflow pressure on a lot of the ASEAN countries. Twin deficit nations like Indonesia and India will face more pressure and economic effect will be larger, says Shane Lee, Director-Economist of Equity Research at CIMB.
According to Shane Lee, the US Federal Reserve is likely to taper sooner or later, which will affect the emerging markets, especially the economies with high current deficit burden like India and Indonesia.