Yen unwinding, US on edge point to mkt tilt

Brokerages map out future success despite current market squalls

- PUNEET WADHWA

Global financial markets have -been on a roller coaster ride in the past few days, driven by recession fears in the US and concerns that the US Federal Reserve may be too late in cutting rates to salvage the situation. In addition, the rate hike by Bank of Japan has rattled investors amid reports of the unwinding of the yen carry trade. Rising geopolitical tensions are also a spot of bother for global financial markets. Most brokerages, however, remain optimistic about road ahead for equities from a medium-to-long-term perspective but caution against near-term volatility.

"Even a complete unwinding of India's carry trade exposure is unlikely to significantly impact the Indian equity market over the long term. Any meaningful short-term fall in the Indian equity market should be seen as an opportunity to increase exposure to equity," wrote Sujan Hajra, chief economist and executive director at Anand Rathi, in a recent report co-authored with Raj Singh and Kaitav Shah.

Here's how leading brokerages have interpreted the recent global developments:

Jefferies