The Indian market is not very sensitive to trade issues, said Arvind Sanger, managing partner at Geosphere Capital Management, adding that the impact on major Indian companies of trade tensions was modestly negative.
“I think that the Indian market is not that sensitive to these trade tensions. So it is not a big deal… the bigger concern is the bigger trade moves going on globally are likely to be a headwind for global growth and that is a negative for the Indian market,” said Sanger in an interview with CNBC-TV18.
Regarding the Federal Open Market Committee (FOMC) meeting, he said, “First of all, I think it is unlikely that the Fed moves in June but you never know. I think the Fed rate cut would be positive for markets because of liquidity easing quicker than expected. So I think that would be a short-term boost for the market.”
“My concern is that global unravelling of the free trade system, which is what we are seeing on a slow medium-term basis is something that is going to remain a risk for economies and Fed cutting rate isn’t going to magically offset that but it would help the markets in terms of at least showing that the Fed is paying attention to the risks of growth from trade tensions,” he added.