So, there is not much room for a negative surprise anymore,” said Maarten-Jan Bakkum, senior strategist (emerging markets), NN Investment Partners (NN IP) based in Netherlands. “India, in a GEM (global emerging markets) context, is one of the less sensitive markets to Fed rate expectations. So, if EM overall is not too much affected by the Yellen speech, India is even less (affected),” added Bakkum. “This increases the probability of a rate hike in the next few months. “The Yellen speech has not changed our base-case scenario of the next interest rate hike of 25 bps by December 2016.

Source: Mint August 28, 2016 18:22 UTC