The Hindu Business Line : Different Takes

Regionally, we are close to the bottom as far as Asia and emerging markets are concerned. It is difficult to predict what would happen in the very short term but in general in Asia and in India the valuations are looking a little more reasonable than they were about two weeks back... I think the kind of decline that the market has faced does not really indicate a reversal in the bullish trend but it is more of a correction.

Manishi Raychaudhari, UBS

The selling that we are seeing in India on the part of the emerging markets is part of the Asia Pacific Japan selling. Just to give you an idea, up to the last month, the overall selling in Asia Pacific ex-Japan has been about $4 billion. India's share has just been 15-20 per cent of that and it has not been that dramatic.

Sanjay Shah, Joint Head & Managing Director,

JM Morgan Stanley

From now on, the overall interest rate situation and the global liquidity situation will determine the direction of the markets... we will move more in tandem with the fundamental factors, rather than the technical factors of excessive leverage. I think a lot of that excessive leverage has been washed through the system.

Uday Kotak Vice-Chairman and MD,

Kotak Mahindra Bank

It is just a change of sentiment over the past couple of weeks. It just turned out to be very nasty. Earnings and economic growth have turned out in a very healthy trend. The scare might be a bit overdone. I do not think it is over as yet though I think there will be opportunities for long-term investors to buy on dips.

Mark Tan Keng Yew, Senior Investment Analyst,

UOB Asset Management, Singapore

I think we need to have a view first on where interest rates in the US are going. Second, as interest rates go up, one has to adjust the discount rates that one would use in evaluating a business proposition or evaluating companies. Those rates are going up.

When you apply rising discount rates to cash flows in Indian companies and Chinese companies, we are probably still at levels which are little bit expensive. So I would expect to see further pressure throughout the summer and in the fall, as this debate about the future interest rates in the US unfolds. My personal view is that we are going to probably see higher rates and less appetite for risk, more selling in Asia over the summer and I think India still looks vulnerable.

Gary Coull, Chairman of CLSA, Asia Pacific