"I do not think we are finished with the rout in any of the emerging
market asset classes, maybe we are more than midway but there is more to
come. After all, what we know about the global environment is that the
West is showing more signs of recovery. That points to tapering from the
Fed.
We do not know exactly when that tapering is going to come. We do not
know how much tapering is going to be. We do not know yet when the
tapering will be followed by stop in the expansion of the Fed’s base
money, more do we know when and by how much the Fed will tighten.
There are lots of stages in the shift in the US and therefore the global
monetary and financial conditions environment that have yet to take
place that would stretch out for a couple of years and it is that
uncertainty and the threat of the coming reduction in the easing of
monetary conditions that precipitated all this and on top of that now we
have the Syrian situation becoming more escalated.
So, countries like India which are capital thirsty are still going to be
in the forefront of this risk reduction episode across global markets."
- in CNBC TV18
