Mkts may see further 5% downside: Macquarie

2008-04-08 16:51:20 Source : CNBC-TV18

Stuart Smythe, Head of Equity India, Macquarie, expects the markets to remain volatile. "India is getting in sync with global markets. We have not seen the end of the unwinding in global financial markets. India has rallied to some extent recently due to short covering, but moderation of GDP growth, currency, and inflation risks remain a concern."

According to Smythe, the markets may see another 5% downside, as value investors have not come in. "We will see more stock specific interest and have not seen the market bottom yet."

He feels there will be a moderation in earnings. "We are likely to see some pressure on margins."