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Oil Prices, FIIs Selling sends Share Market is in chaos, and Investors are in panic, Is it the right time to rejig our portfolios? In this exclusive interaction, Ketan Gujarathi, Fund Manager – Equity at Quantum AMC, shares his views on the recent volatility in the Indian stock market amid the global oil crisis and continued FII selling. He explains the reasons behind the panic in the markets, whether further downside is possible, and when foreign investors may return

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00:00So sir, now we are looking at the bazaar confused, or do we expect that there will be confusion more
00:05than the other bazaar in the bazaar?
00:10Yes, of course, the confusion will become more than the other days, but we will think about the confusion or
00:15the risk of the next year's earnings or the next year's earnings will impact.
00:22India's rest of the economic situation is very strong, otherwise. If you look at the debt to GDP, which is
00:31called the corporate balance sheet,
00:35if you look at the margin in the stocks, if you look at the margin, then we will have a
00:42better position than the other markets.
00:45This is where we understand. And we don't think that because of this thing, there will be so much impact
00:49in the next two years of earnings.
00:52So we calculate each company's intrinsic value.
00:57So what would be fair for a company based on its earnings and its long-term potential?
01:05If you look at the margin in the stock market, there will be so much change in the stock market.
01:08So I think that it will be a short term.
01:11There will be volatility in the short term, but there will not be a long-term return.
01:17Long-term returns will not be an impact.
01:19But if we talk about long-term,
01:21whether we talk about transactions in the stock market will have more fees?
01:26The price is at the same time quite a bit,
01:29which will be likely to learn from fiscal trading.
01:31In fact, the price is nothing.
01:33As the price is worth of the price.
01:34So when you look at the price,
01:34that we expect really.
01:36At the same time, the price must be extremely attractive for us.
01:42that we will be back again, but this is the whole scenario that FII's selling is triggering
01:48right?
01:50Yes, that's right.
01:51So, FII's buying is usually when the earnings growth is more than a year.
01:57So, last year, we will see that FII's recovery was so much.
02:00This is the reason that we didn't have the growth that the other emerging markets were
02:06in the US.
02:07So, AI related stocks which gave the earnings growth very good.
02:11But in this moment, we had the hope that in this February, it was like that India's earnings
02:19and earnings started to increase.
02:20And in 2017, the earnings growth has been very good.
02:28So, FII's buying is also started.
02:30So, we had the hope that if it's pan out, it will be a good return to FII's recovery.
03:04But now, the new risk is out of the blue.
03:06So, FII's the reason is that India's risk has increased.
03:10I would like to say that India's risk of raising the price from the currency in the currency.
03:17So, the risk of the economy is increased.
03:20So, FII's is a risk of the return.
03:22So, FII's does not need to return.
03:23So, first, the share price is increased and then there will be a good return.
03:27So, the return will be higher and then there will be a better return.
03:30So, the expectation of the return will be better.
03:32I don't think that India's risk has increased, but I think that it is a bit difficult, but
03:39I don't think that any interaction we have, I don't think that India has a negative view
03:49but now that the currency will be moment and the current account deficit will be
03:55the same way, it's a bit of a fear, so it's a bit of a selling.
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