Experts are looking forward to the budget for government’s controlling measures to combat inflation in India. Otherwise, they feel, there is a big risk that India might get into a tail spin because of high oil price and already high food inflation.
In an interview to CNBC-TV18, R Sukumar, Director of Franklin Templeton Investments warned that the government should control fiscal deficit, else there is risk of losing global interest in India on inflationary pressures.
“If the deficit also goes out of control then we have a serious risk that the projected growth trajectory may come down and inflation pressure might continue at significantly higher level and the foreign interest in Indian market could decline significantly,” he elaborated.
Sukumar thinks that there is possibility that the market has some more downside but some stocks might see upside while some may see some downside and probably the broad indices stay close to where they are.
The market seems quite worried about the spike in crude. However, Sukumar thinks it is not going to alter the long-term trajectory. “Any significant dips caused by the volatility could be buying opportunities for serious value investors,” he added.
According to him, India will see positive global flows in 2011. “Our share of the global flows will be lower compared to what we saw in 2010. But my estimate is still that we will see positive flows in 2011."
Source: www.moneycontrol.com
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Gaurav Agarwal
Head Dealer
DENIP Consultants Pvt Ltd
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