Dubai not a case of system failure, only cash mis mgmt – ICICI Pru MF

Dubai not a case of system failure, only cash mis mgmt; India to benefit from high liquidity, low rate scenario; infra work in Dubai progressing well; expect Q2 GDP around 6.5% Vs consensus of 6.1%: ICICI Pru MF

Nilesh Shah, Deputy MD of ICICI Prudential AMC said that Dubai is not a case of system failure, but is only a cash mis management. He feels that low interest rates could put pressure on Vietnam, Dubai & Eastern Europe nations. However, India will benefit from the high liquidity, low rate scenario.

He further said that infrastructure work in Dubai is progressing well. Day to day work is going normal in Dubai till now. He feels that India will benefit from asset allocation from Gulf. He is expecting to see trade of short West, long East. He expect Q2 GDP around 6.5% against market consensus of 6.1%. Markets are trading around higher end of fair value. More flows are expected in January 2010 due to asset allocation. He expects gradual withdrawal of stimulus in developed countries. Indian markets have factored in RBI rate hikes. Lead managers have priced IPOs fully, leaving nothing on table, he added.

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