Mumbai: 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.
In India, the Reserve Bank has given policy signals,
including the recent hike in Statutory Liquidity Ratio that it
was exiting the easy money regime but the apex bank will have
to hike its policy rates sooner or later, Sinha said.
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.
Bureau Report
First Published: Wednesday, November 18, 2009, 18:11