Despite surcharge rollback, near-term flows may remain muted: Chhaochharia

Being one of the early commentators to flag economic slowdown and caution investors on corporate earnings, Gautam Chhaochharia, head of India research, UBS Securities, in an interview with Hamsini Karthik says the markets remain in an expensive zone despite the recent correction. Edited excerpts:

1. Will the roll back of FPI surcharge be viewed as a major positive by these investors? Do you expect this to reverse sentiments? 

This is will be a sentiment positive for sure but growth concerns may continue to linger and thus cap market reaction. Also, the global backdrop has also turned less favourable over the weekend. We