Emerging markets bonds, equities rally set to slow down: Kotak

By: |
Published: September 1, 2016 6:09:11 AM

The Indian market’s fundamentals may perhaps become more relevant — they are good but not as great as what stock prices make them out to be.

The macro rally in EM bonds and equities post the ‘Brexit’ referendum may slow down as global markets assess the extent of potential policy normalisation by the US Fed over the next few months and limited accommodation potential from other central banks and impact of the same.

The Indian market’s fundamentals may perhaps become more relevant — they are good but not as great as what stock prices make them out to be.

Global markets have marginally recalibrated their expectations of a US Fed rate increase based on recent comments of various US Fed governors before and during the Jackson Hole Symposium and recent economic data from the US.

The rally in EM bonds and equities may slow down (if not reverse) over the next few months as markets assess the extent of monetary policy normalisation in the US and impact of continued monetary accommodation by other large central banks.

For latest coverage on Maharashtra Assembly Election 2019 and Haryana Assembly Election 2019, log on to financialexpress.com. We bring you full coverage of Assembly Election 2019 on Financial Express, stay tuned for latest election updates.

Get live Stock Prices from BSE and NSE and latest NAV, portfolio of Mutual Funds, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.