Bloomberg News

Asian Stocks Rally Has More ‘Shelf Life,’ Quant Broking Says

October 13, 2011

Oct. 13 (Bloomberg) -- Sandeep Tandon, managing director at the Mumbai-based Quant Broking Pvt., comments on the outlook for Indian equities in an interview with Bloomberg UTV.

The benchmark BSE India Sensitive Index lost 0.3 percent to 16,907.67 at 2:22 p.m. in Mumbai, giving up gains of as much as 0.7 percent. The gauge jumped 2.5 percent yesterday to the highest in three weeks.

On investor sentiment:

“In the last 10 days, risk appetite has increased, which is clearly reflected in commodity prices. The current relief rally has more shelf life and we are slightly more positive on developed markets versus emerging markets.

‘‘The developed markets outperformance versus emerging markets continues. This rally can last another six to eight weeks or so. The market can consolidate for a month. Given the earnings season, markets will remain in a very tight range.’’

‘‘After November 2010, this is the first time we’re seeing India outperforming emerging markets. I will still call it a reflex rally. I don’t think anything has changed dramatically.”

The MSCI Asia Pacific Index rose 1.1 percent to 117.51 as of 3:24 p.m. in Tokyo, taking its gain in the past six days to 9.5 percent. The gauge rose this week after German Chancellor Angela Merkel and French President Nicholas Sarkozy pledged at the weekend to deliver a plan to recapitalize banks and address Greece’s debt crisis.

On the rupee:

“The rupee still remains weak. There’s some amount of consolidation happening on the rupee the bias is still weak.”

The Indian currency fell 8.7 percent in the September quarter, the most since 1992.

--Editor: Ravil Shirodkar

-0- Oct/13/2011 09:04 GMT

To contact the reporter on this story: Rajhkumar K Shaaw in Mumbai at rshaaw@bloomberg.net

To contact the editor responsible for this story: Shiyin Chen at schen37@bloomberg.net -0- Oct/13/2011 08:00 GMT


American Apparel's Future
LIMITED-TIME OFFER SUBSCRIBE NOW

(enter your email)
(enter up to 5 email addresses, separated by commas)

Max 250 characters

 
blog comments powered by Disqus