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Share Market 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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Transcript
00:00Sir, you said that the FIIs are trying to break prices, so do we expect that it will become a
00:07bottom?
00:09I don't know, but we will think that if you look at the other way, the DIs buying is strong.
00:17It's two reasons.
00:18One is the SIP flows.
00:20The SIP flows are coming.
00:24It's a long-term story about the savings in the equity market.
00:29The other means that the DIs is a long-term investor.
00:32They don't have another chance to invest.
00:36For example, the FIIs is going to be in Korea, Japan, the US, the Europe.
00:40They can invest anywhere.
00:42For the DIs, India, either you can invest in equity or bond.
00:46So, DIs investing will continue.
00:50And the inflows will continue.
00:51So, in these two reasons, I think that one will get support in the market quickly.
00:57Especially in those places where the valuations are very attractive.
01:01We understand this in our company that the large cap is very attractive.
01:06And the long-term return which is made in equity, it's a waste here.
01:11That's why we have made positive views.
01:13So, if you have a positive view, then you should know which sectors are looking good at this crisis situation.
01:23Which sectors are looking good at this crisis situation?
01:24Which sectors are looking good at the radar?
01:25Long-term, if you can see it, if you can see it.
01:27Defense is an attractive bit.
01:29In defense, there is a very romantic mode in this sector.
01:34If you can see it, in the last 10 years, the warfare has changed.
01:39First, there was an army.
01:41There was an army.
01:42There were tanks and attacks.
01:43There were attacks.
01:44There were guns and rifles.
01:46Now, these are modern warfare.
01:48Where there were a lot of drones and missiles.
01:53So, the new technology has changed.
01:55And that's why there were a lot of investments in the defense sector.
01:59And the government's behalf.
02:01So, I understand that this is a good long-term story.
02:05This is a long-term story.
02:05This is a long-term story.
02:06This is a long-term story.
02:07This is a long-term story.
02:17Now, we have no addition to that.
02:21But, the story is quite nice.
02:23But, long-term story will be there.
02:25This is a long-term story.
02:26We will always have to buy it.
02:27We will do this right to know.
02:29Fundamental, there are a few risks to which you can counter?
02:35First, the risks are the most recent years.
02:38The one we saw is tariff.
02:40The one we saw is tariff.
02:44The one we saw, the one we saw.
02:47which is the FDI flows
02:50in India
02:51foreign direct investment
02:53foreign investors
02:56invest in India
02:57one shares
02:58market
02:59or plant machinery
03:01or business
03:02set up
03:04so
03:05the website
03:06set up
03:07because
03:10India
03:11had a big penalty
03:12and fear
03:13that
03:14if
03:15the FDI
03:16is less
03:17then
03:17we can impact
03:20but
03:20the risk
03:21has gone
03:21the other risk
03:24that
03:24there is
03:26some impact
03:26like
03:27share returns
03:28which
03:28is
03:28about
03:3210%
03:33then
03:33share price
03:34return
03:34is
03:3511%
03:36so
03:37if
03:42there is
03:44the risk
03:44value
03:44and
03:45D-rate
03:46so
03:46earning
03:47is less than 2-4%
03:48but
03:49the value
03:49is less than 5%
03:50so
03:51total
03:5110%
03:52so
03:54investors
03:54keep
03:55attention
03:56keep
03:56in
03:57prices
03:57are
03:58adding
03:58so
03:59you
03:59see
04:01a sharp
04:03fall
04:03because
04:04investors
04:06are
04:06thinking
04:07that
04:08if
04:08I
04:18and
04:21then
04:23if
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