Fed's dovish stand, which points to a more benign liquidity environment, is pushing Foreign Institutional Investors (FIIs) towards India. At home, country-specific factors such as the Reserve Bank governor Raghuram Rajan's move towards easing liquidity is boosting confidence.
Fed‘s trimming of growth forecast has led to a reversal in view once again with focus shifting to emerging markets, away from the developed markets. Sunil Garg, managing director of JPMorgan Securities sees the rupee going below 60 per USD in the near-term.
During the Iraq war, interest rates were falling and the markets rebounded almost as soon as the war started. As far as India goes, Sunil Garg feels rupee right now is undervalued. But rising oil prices and risks to portfolio outflows could lead to further depreciation.
Ridham Desai of Morgan Stanley says that last week, the brokerage house trimmed banks by 200 bps. Now the firm takes its position down by a further 300 bps, he adds.
JPMorgan Securities‘ Sunil Garg feels PSU banks definitely look attractive along with the NBFCs. He sees easing some asset quality pressure going ahead.
Blaming fundamental headwinds in Asian markets, Sunil Garg, managing director, Head- Asia Banks & Financial Services, JP Morgan, says the weakness in emerging markets is not externally driven.
Even though the US saw two big events last night, Sunil Garg of JPMorgan Securities believes that the situation in Europe is more worrying.
Ever since the US Federal Reserve made its statement last night, risk assets have seen a boost. Indian equities were in the green today after almost five days of trading in the red. According to Sunil Garg, Head of Asia-Pacific Equity Research at JP Morgan, the Fed’s statement has calmed nervous markets.