In an interview with ET NOW, Paul Schulte says, the rally in Indian equity markets could run out of steam as sticky inflation and fiscal deficit issues could weigh on sentiment. Schulte says he doesn't see the rupee appreciating further unless macros issues are tackled.

Investors are now turning from return OF capital to return ON capital for the banks. The global universal investment bank model is broken as their ROCs are now between zero and 1% and this is year six of the GFC. These banks are 1.Issuing staggering amounts of bonds to create unsustainable amounts of leverage 2.Trying to make money in businesses which are, one by one, being eaten away by Silicon Valley innovation 3.Jousting with malcontented [...]