Aviation policy to have positive impact on rupee: Sudhir Agrawal, UTI MF
In a chat with ET Now, Sudhir Agrawal, Fund Manager - Fixed Income at UTI MF shares his thoughts on the aviation policy. Excerpts:
ET Now: What is your take on the civil aviation policy?
Sudhir Agrawal: That is not my area of expertise but overall, it is a welcome step because that will open up more space for other foreign players to get in. It might even be good for the rupee because if we see more flows coming in,then that might be supportive for the rupee at a time when other emerging market currencies are under pressure. So from a macro point of view, that is good.
ET Now: What was your reading of the Fed statement? The US GDP data came down sharply so if the Fed was to be consistent, maybe there is no case for hiking rates. But most interpretation of the FOMC statements now seem to suggest that December is very much on the cards. What is your reading?
Sudhir Agrawal: It is important to understand that even if there is going to be a rate hike, direction-wise it is negative. When the economy was at the levels of 2008, the kind of rates they are sitting at were close to 0%. Now with so much of growth and with unemployment numbers coming down significantly, 0% does not go down well here.
That probably is one of the reasons why Fed might not want to delay the rate hiking process too much. With any sign which points to global uncertainty getting stabilised probably, they might not mind hiking the rate. And probably that will be better for the overall global economy because the fear of the unknown has created a lot of uncertainty among people and when Fed hikes rates, they are rid of that uncertainty.
When the taper tantrum started, there was a lot of hype around that. But when the actual tapering happened, it did not affect the market too much. So there is still a possibility of a rate hike soon. And as when that happens, after an initial round of volatility, we should see market stabilising.
30/10/15 ET Now/Economic Times
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In a chat with ET Now, Sudhir Agrawal, Fund Manager - Fixed Income at UTI MF shares his thoughts on the aviation policy. Excerpts:
ET Now: What is your take on the civil aviation policy?
Sudhir Agrawal: That is not my area of expertise but overall, it is a welcome step because that will open up more space for other foreign players to get in. It might even be good for the rupee because if we see more flows coming in,then that might be supportive for the rupee at a time when other emerging market currencies are under pressure. So from a macro point of view, that is good.
ET Now: What was your reading of the Fed statement? The US GDP data came down sharply so if the Fed was to be consistent, maybe there is no case for hiking rates. But most interpretation of the FOMC statements now seem to suggest that December is very much on the cards. What is your reading?
Sudhir Agrawal: It is important to understand that even if there is going to be a rate hike, direction-wise it is negative. When the economy was at the levels of 2008, the kind of rates they are sitting at were close to 0%. Now with so much of growth and with unemployment numbers coming down significantly, 0% does not go down well here.
That probably is one of the reasons why Fed might not want to delay the rate hiking process too much. With any sign which points to global uncertainty getting stabilised probably, they might not mind hiking the rate. And probably that will be better for the overall global economy because the fear of the unknown has created a lot of uncertainty among people and when Fed hikes rates, they are rid of that uncertainty.
When the taper tantrum started, there was a lot of hype around that. But when the actual tapering happened, it did not affect the market too much. So there is still a possibility of a rate hike soon. And as when that happens, after an initial round of volatility, we should see market stabilising.
30/10/15 ET Now/Economic Times
