Complacency over Brexit impact worrying -:- Equity Research

The high level of complacency among investors about the impact of Brexit and that Brexit's impact will be restricted to Europe and the UK is worrying, said Abhay Laijawala, Head-India Research at Deutsche Equities, speaking to CNBC-TV18. This, unlike the Lehmann Crisis of 2008, is a political event which can translate in to systemic risks for global markets, he told CNBC-TV18, cautioning investors to closely watch global currency swings. "We have to brace ourselves for high levels of volatility," he said. Laijawala said FII inflows depend on global risk aversion. US' 10-year yields have gone down in the recent past but there hasn't been a sharp fall in oil prices and so far markets haven't seen a global risk aversion, he said. India is well positioned on the external front. The country is less vulnerable because of strong FDI inflows offsetting deficit and government's reforms push coupled with FDI liberalisation should help the rupee do well, he said