"On a relative basis, we are not as expensive as one would have imagined simply because the entire emerging market pack has also gone up. That provides some degree of downside support to the market, even though near term, because of absolute valuations, you could see some degree of volatility. The way we have been constructing our portfolio is clearly looking at pockets of growth where earnings growth sustainability is visible."
“Our best guess in terms of RBI s rate action would be that possibly the central bank would wait to see how the US Fed is reacting and then take a view in terms of rates. So, yes, sometimes maybe in the first half of next calendar year, our best guess would be at this point in time.”
Do also keep in mind that there is an election round the corner there as well which means that they would not want to significantly upset any apple cart out there. Growth and stability which have surprisingly been very positive and continue to hold strong, I think will be far more paramount than just necessarily taming inflation is my view.
It is more important for them to gauge whether the Indian rupee itself is going to continue on its significant depreciating bias or whether it s going to be more stable or possibly even start seeing some amount of appreciation.