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Willem Buiter of Citi feels the emerging markets are unlikely to falter as the momentum in the emerging markets steadily pick up pace in 2017. For instance, he says the worst performers of last year, Russia and Brazil, are showing various positive signs.
RBI is operating in an inflation targeting framework and they will decide on rate cuts with an eye on their 4-percent inflation target, says Jahangir Aziz, Asia Economic Research, JPMorgan.
"The policy arsenal in the advanced economies is unfortunately very depleted, debt is still higher in the non-financial sector than it was in 2007. So we are really sitting in the sea watching the tide go out and not really able to respond effectively to the way we should."
The turbulent response of equity, commodity and emerging markets marks this as a rare, if not singular instance in recent years of markets reacting so negatively to an ostensibly dovish policy signal from the Fed.
In an interview with CNBC-TV18, Citi Global Chief Economist Willem Buiter says there is ample liquidity in global markets and does sees the recent downgrade of Brazil's rating as a country specific development
Greece's parliament voted early on Sunday in favor of Prime Minister Alexis Tsipras' motion to hold a July 5 referendum on creditor proposals for reforms in exchange for loans, with the country's future in the eurozone looking increasingly shaky.
The European Central Bank could manage those events with existing tools, including the activation of a "hyperactive" level of quantitative easing and purchases of sovereign bank debt on the primary market through the European Stability Mechanism.
Willem Buiter of Citigroup believes India is back on the reforms path, he adds: "India did better in 2014 than 2013 and I expect that this momentum will be maintained. We've got very sound monetary and exchange rate management. We've got better fiscal management than we had."
According to Laurence Balanco of CLSA, for the Nifty, it's important to remain above the lows it hit in November 2012 as a break below that would mark a top for the uptrend and a downside target of 5,250.
John-Paul Smith, Deutsche Bank said they had been underweight Emerging Markets and continued to maintain that position. But they were overweight India, which is a major beneficiary of lower oil prices.
Greece will leave the euro zone next year and the country's new currency will "immediately fall by 60%," according to Citi chief economist Willem Buiter.
Wall Street is starting to sound a little spooked.
Jean-Claude Manini, senior economist-Europe, The Conference Board talks to CNBC-TV18's Menaka Doshi over concerns that Spain was slowly sinking into a European abyss if no financial aid came about soon.
Willem Buiter of Citigroup continues to expect further debt restructuring in Greece, as well as other Euro countries.
Niall Macleod of UBS expects growth in Asia to continue slowing and earnings forecasts to slip further.
This referendum will create uncertainty and potential delays with regards to measures necessary to placate investor scepticism. It does little to resolve the underlying solvency pressures being faced in several Eurozone countries.
The trailing capital flows are significantly lower, consensus expectations seem moderate, market is positioned for bearish outcome and corporate balance sheets seem much stronger.
