Global fund flows to remain favourable: Arvind Sanger, Geosphere Capital Management

In a chat with ET Now, Arvind Sanger, Managing Partner, Geosphere Capital Management, shares his views on markets. Excerpts:

ET Now: How did you read the FED minutes and what kind of implications it have on fund flows in the near term?

Arvind Sanger: That FED minutes were little dovish seems to be the most straightforward interpretation but it is too data dependent. We have been concerned about stronger dollar, lack of inflation, lower oil prices and lack of labour for a few weeks.

The biggest positive data in the US has been strong employment growth but lack of any labour inflation as well as any other inflation as well as headwinds from what is going on in Europe with Greece and other global slowdown and from a stronger dollar, all suggest that the FED is not in a rush to raise rates.

So, June has been one of the earliest expectations for a rate rise. Today’s minutes suggest that it may not be soon which is good for global liquidity. From an India standpoint, it should allow global fund flows to remain favourable.