Asian mkts to continue trading in range: S&P Eq Research

Asian markets have opened on a high note as the drop in oil prices boosted cost sensitive and consumer stocks while the rise in the dollar lifted the exporters. Speaking to CNBC-TV18 Lorraine Tan, Director of Equity Research (Asia) at Standard and Poor's Equity Research said, “.The recent indications are positive, I think we are also going to be wary that the oil prices may just hover around the current levels and on that note we still would expect to see a little bit of a continuation of this range trading to go ahead

Excerpts from CNBC-TV18's exclusive interview with Lorraine Tan:

Q: Which markets do you feel will benefit most from this crude decline currently and we are also seeing a fair bit of strength in the financials?

A: Yes, I think the markets that will obviously benefit the most are those that had inflation issues to contend with and really that is a lot to do with the emerging markets, for example China and India. If we have this lessened inflation pressure, I think it will begin to provide some flexibility to the Central Banks and sort of ease back on the brakes a little bit and generally speaking that has got to be the more positive thing for the equity markets going ahead.

Having said that I think the other thing we are looking at is reduced cost pressures on corporates from the slide in oil prices. 

Q: What is your call in India now, your year end target because globally its the same sort of factors and worries across the globe be it inflation, be it financials, oil prices all of it?

A: Yes, we are still more worried about some of the emerging markets still for example like India. Although I said that the recent indications are positive, I think we are still going to be wary that the oil prices may just hover around the current levels, on that note we still would expect to see a little bit of a continuation of this range trading to go ahead.

The other thing that on a horizon that we are looking out for on the negative side is the fact that there has been greater slowing globally, so we would be watching out particularly for smaller companies to see how they fair.