Market may not see panic selling as tapering starts: Arvind Sanger

In a chat with ET Now, Arvind Sanger, Managing Partner, Geoshpere Capital Management shares his views on market.

ET Now: What about India? How do you think we do in light of what the RBI has done and because of the global markets support?

Arvind Sanger: RBI's action yesterday was very interesting. While the Governor Raghuram Rajan has been talking quite hawkish, the action was somewhat contradictory to that. There is some explanation for that which is that we have seen specific I guess anecdotal evidence at least that vegetable prices have come off sharply in the last few weeks and therefore this data that we have seen of unusually high inflation may not sustain in December. Also RBI has given notice that they will not hesitate if the data continues to stay back to take action. So RBI by showing its growth interest and not just inflation slaying interest but also wanting to not kill growth has provided some support to the market because it has shown that side of its desire to support growth and with backdrop of moderately improving sentiment and earnings and the FED taper not looking as onerous or draconian as people have feared, the markets should be okay. I am not sure that again today is going to be huge rally but as long as other data remain supportive and the current government does not do anything to up to the elections, the markets have a generally positive bias.