Foreign investors will continue to sell Indian equities: Geoffrey Dennis

The biggest risks to EM equities this year are coming from sharply higher US yields as inflation breaks out, forcing more Fed action, says Dennis

With the markets already correcting nearly 10 per cent from their peak levels seen in January 2018, Geoffrey Dennis, head of global emerging markets equity strategy at UBS, tells Puneet Wadhwa the company downgraded India from overweight to neutral earlier this year. The concern, he says, was very high valuations. Edited excerpts:
 
What are the key takeaways from the US Federal Reserve meet?
 
The US Fed is responding to a stronger economy, the risk of higher inflation, and the recent US fiscal expansion with this week’s rate hike. UBS expects four rate hikes this year, still above the