The US central bank on Thursday held off on raising rates amid heightened "uncertainties abroad," including China's economic weakness as well as sluggish inflation at home. A rate hike would have ended a nearly 7-year-old zero interest rate policy.
Speaking to CNBC-TV18, Steve Brice, Chief Investment Strategist at Standard Chartered Bank says Sensex may see some short term weakness in the immediate future and there exists a good buying opportunity for the investors.
With volatility coming back into the market and returns going down, investors can look elsewhere – be it within bond markets or some local currency markets, says Steve Brice of Standard Chartered Bank
"The thing that makes it very different for India obviously is the benefits of falling oil prices that helps protect the situation significantly," Steve Brice of Standard Chartered Bank told CNBC-TV18.
Steve Brice of Standard Chartered Bank says the US economy is doing well and inflation expectation has moderated. He believes Fed will guide people in the right direction – focus on growth and any movement in interest rates is going to be gradual.
Discussing the global trend, Steve Brice said contrary to history where September is seen as a weak month, he expects it to be a good month where global markets will see good gains.
"Budget is a hurdle passed. People are still looking towards elections and uncertainty that could create,"Steve Brice Chief Investment Strategist at Standard Chartered Bank said.
Steve Brice, chief investment strategist, Standard Chartered Bank believes as long as the data coming out of the US continues to be strong, markets will take tapering in its stride.
In an interview to CNBC-TV18, Steve Brice, Chief Investment Strategist, Standard Chartered Bank spoke about rupee and global markets.
Steve Brice, chief investment strategist at Standard Chartered Bank speaks about expectations from the European and emerging markets (EMs) going forward. He also tells CNBC-TV18 on the impact of the economic data in US on such markets.
US stock market will continue to make new highs because the earnings so far have beaten consensus forecasts. The markets seem to be shrugging of bad news and are focusing on Fed and US data, says Steve Brice
Steve Brice of Standard Chartered Bank does not expect Ben Bernanke to say too much at this juncture because from a economic perspective the need for him to do something is not that great at this stage. They expect tapering by Fed is likely from Q1 of next year.
Steve Brice, Standard Chartered Bank believes that Nikkei has been performing extremely well for an extended period, without any pause or break.
Global markets are down and if the cause was Cyprus before now it is North Korea. Markets might be heading for a period of uncertainty because of the various reasons. Steve Brice, Standard Chartered Bank feels that some of the vulnerable underperforming markets like India might fare through that patch.
Steve Brice, Chief Investment Strategist at Standard Chartered Bank feels although, there is a shift towards volatility, markets may not correct more than 5 percent.
Steve Brice of Standard Chartered Bank expects to see a 5-10 percent short-term pullback in markets. He says the Sensex can touch 22,000 levels in the next 12 months.
According to Steve Brice, Standard Chartered Bank, there is 60% probability of a slight pullback in equities, maybe 5-10% in the short-term. "But we would be advocating that people really use that as a buying opportunity," he asserts.
Over the last couple of days, markets are slightly sluggish and Steve Brice of Standard Chartered Bank feels the rally is pausing due to no concrete action from the European Central Bank (ECB). In an interview with CNBC-TV18, Brice said that he maintains a positive bias on equities and advises buying on declines.
Although declining inflation has brought in some relief, Steve Brice, chief investment strategist at Standard Chartered says the recent pick up in oil price will add to current account deficit worries.
Although, the European leaders came up with some positive news during the Euro Summit, Steve Brice, Chief Investment Strategist of Standard Chartered Bank feels that Europe must have structural reforms in the long-term.
Steve Brice of Standard Chartered Bank says that while inflation continues to be a major concern for India, the scope for further monetary policy easing by the Reserve Bank of India is quite limited at the moment.
The global markets were already apprehensive of the European elections and the BSE Sensex dropped more than 1% on Monday, as global risk assets sold off after elections in Greece and France fuelled questions on their austerity policies.
Steve Brice, chief investment strategist at Standard Chartered Bank tells CNBC-TV18 he expects government bond yields to soften post the LTRO announcement.
In an interview to CNBC-TV18, Steve Brice, chief investment strategist at Standard Chartered Bank finds that as he compares emerging markets to its developed peers, he sees the later faltering in the first quarter but slowly picking up in the second half of the year.
Steve Brice, Chief Investment Strategist at Standard Chartered Bank tells CNBC-TV18, European leaders need to get more serious about the situation in the Eurozone.