Motilal Oswal says higher oil prices pose biggest challenge to current account deficit

Motilal Oswal Asset Management on Wednesday said that country's current account deficit is facing challenges and it's exacerbated by higher crude oil prices.

In an interview to CNBC-TV18, Gautam Sinha Roy, senior vice president - fund manager, said, "We have benefited a lot from foreign portfolio investor (FPI) flows both debt and equity over last three to four years, which has held the currency stronger than it would have normally been on real effective exchange rate (REER) basis." 

On market front, Roy said, "I do not think India is a vulnerable country and if the market, especially the equity market in India corrects, it will become again attractive for foreign investors, because we are so decoupled from all the problems happening in the world."