Speaking to CNBC-TV18, Sebastien Galy, FX Strategist, Societe Generale says yields in Europe are now likely to fall.
UBS is not very upbeat on the rupee's stability after the slew of measures introduced immediately by Raghuram Rajan after taking over as the RBI Governor on Wednesday.
Forex market analysts believe that the currency may weaken more on the back of strong dollar demand. Employment data from the US has also been strong, which has led to this move, says Ashutosh Raina, head of FX trading at HDFC Bank.
Currently, whichever way you look at it, valuations are extremely expensive, investors should be cautious, asset allocation is going to be the biggest challenge no matter which asset class is looked into
With EMs trading at around 10 times P/E compared to developed markets at around 14 times, the downside seems to be protected especially in equities. Hence, in August series, 5,600 on the lower side and 5,900 on the higher side could be a broad range to look at
CNBC-TV18‘s Nimesh Shah and Ashmit Kumar report that brokerages fear emerging markets will face brunt of the gradual tapering of the US Fed's QE programme.
The market rallied again on Friday, with the Nifty moving up 30.95 points to close at 5867.90 and the Sensex at 19,495.82, up 84.98 points. Market breath was healthy too, with the advance-decline ratio at 1196:1125.
Emerging markets (EMs) will continue to underperform for the next 3-5 years, says Mark Matthews of Bank Julius Baer & Co. He told CNBC-TV18 that the data trend in the US being positive will hit performances of EMs.