Rise in inflation a red flag for asset classes, says Marathon Trends’ Atul Suri

According to him, emerging markets have moved into sideways mode. “Emerging markets as a lot have not been doing much. In fact, they have gone into sideways mode. Therefore, if bond yields collapse in the US, there is a bit of caution, there is a fear of inflation, taper talk. So, this kind of tempered optimism is there, but I continue to believe that the markets will head higher; there will be short-term corrections in week-ten days, but beyond that, the markets are heading higher,” said Suri.

“I am in the camp that feels inflation is going to be a one-off; it is not going to be sustained inflation and this is going to keep bond prices under the lid. This is going to help the risk contrarian and that’s where India would benefit. So, from a Nifty point of view, we are at 15,700 thereabouts, but we are heading towards 17,500. There will be corrections, but we are heading higher as a market and it’s just the global play of liquidity; nobody can find the top, but I personally feel that it is not too late, markets will give short-term corrections and you need to use it,” he said.

For the entire interview, watch the video.