The US market yesterday shrugged off North Korea tensions and major indices closed higher on Tuesday. So does this mean the risk appetite is back and would selling seen in Emerging market turn into inflows was the question asked by CNBC-TV18 to Richard Harris, Chief Executive, Port Shelter Investment Management.

Harris said it is too early to say that risk appetite is back because US is in the midst of third quarter, which is usually a jumpy one. It could be that the market was just looking for some reason to pull back but it is unlikely that this North Korea issue is going to be something very serious just yet.

According to him, the issues going on with Trump are quite discounted by the market, for the markets to take fright there has to be some sort of event or series of events. Although there could be some skittishness for a while.

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When asked if the first number of tax payments post introduction of GST in India and if the number continues to trend on similar path, would lead to an upgrade for the country, Harris said taking only one particular factor and one number into consideration would not be relevant. However, if the bull market in India continues then there will probably continue be long-term rotations into the market.