FXstreet.com (Barcelona) – Indian markets are going through an extremely volatile period, and Standard Chartered Indian-based Team has taken the time by asking their corporate clients a few simple questions after three client conferences in the cities of Bangalore (26 June), Hyderabad (27 June) and Chennai (28 June).
They received 125 responses in total considering it to be a large enough sample to gauge the mood. “Interestingly, though, we did not find much variation in the responses, and this is likely to be indicative that the opinion could be similar in other areas as well” says Samiran Chakraborty, Analyst at the bank.
Standard Chartered concluded that “clients are pessimistic about FY13 growth, optimistic about 2014 elections changing the growth outlook, stimulating investment top priority; worries about INR depreciation muted, expectations of rate cuts tempered, while divided views on the USD-INR” Samiran says.
On the USD/INR, Mr Chakraborty notes: “Forty percent of our sample clients thought it would be above 57 by end-September 2012, possibly a new high, whereas 4% felt that it could come in above the psychological level of 60. Another 40% of the clients seem to support our view with 55-57 as their preferred range for USD-INR by end-September (we forecast USD-INR at 56). On the other hand, 20% of the clients felt that USD-INR could appreciate during this quarter and forecast a range of 52-55.”
