Central banks unlikely to co-ordinate stimulus exit: Sinha
Central banks are unlikely to go for co-ordinated withdrawal of stimulus measures as it may hamper global economic recovery, a top financial services expert on Wednesday said.
Mumbai, Nov 18: Central banks are unlikely to go for co-ordinated withdrawal of stimulus measures as it may hamper global economic recovery, a top financial services expert on Wednesday said.
"I don’t think there will be any co-ordinated withdrawal of stimulus and liquidity by central banks across the world... it will be guided by local considerations," UTI AMC Chairman U K Sinha told reporters here today.
Speaking about UTI AMC Sinha said, it has seen positive inflows into its equity-oriented funds in the past three months and auto, IT and pharma sectors have shown a good growth.
While auto, pharma and IT sectors are picking up and FMCG firms continue to grow driven by rural demand, infrastructure firms may take a little more time to pick-up, he said.
"The auto sector is doing well... we are positive on pharma and IT. Infrastructure, a little more time is required," Sinha said, adding that weak monsoon has impacted the country's agriculture sector.
"Unfortunately, there is nothing new which can happen on the agriculture front. Monsoon is over, whatever has to happen, has happened," he said.
On reforms, Sinha said even if the proposed pension bill is passed in the present form, it is unlikely to make any significant change in the industry.
"Even if it is passed, my own feeling is that it is not going to change the scenario in a significant way..." he said.
The stockmarkets are primarily driven by foreign fund flows rather than domestic factors and investors need to be cautious, Sinha said.