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  • 8 hours ago
A sharp sell-off rattled India’s stock markets as investors reacted to global uncertainty and rising geopolitical tensions.According to Shrikant Chouhan, Head of Equity Research at Kotak Securities, the recent market correction has been triggered by weak global cues, rising crude oil prices, and a strong risk-off sentiment among investors.Speaking in Mumbai, Chouhan noted that while volatility may continue in the short term, the long-term fundamentals of the Indian economy remain strong. He advised investors to stay cautious and focus on long-term strategies as markets navigate through uncertainty.Watch the full breakdown to understand what caused the market bloodbath and whether a recovery could be on the horizon.

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00:10so the thing is the sensex is down by 2.3 per 2.13 percent and uh uh the nifty
00:18is also down
00:19down by 2.01 percent the inr figures are 92.65 and the crude oil opened at around 112.15
00:26dollars
00:27what's your take sir how is the market performing the market seems to open at red
00:34yeah see like we cannot uh forget that we are still into that uncertain uh scenario of the market
00:43a lot of uncertainty is there a lot of things are happening globally and especially crude prices
00:48uh they're certainly like we need to be very very careful because the way they have uh inched up
00:56from their lows of hundred dollars to almost 110 it is something which is concerning uh to emerging
01:03markets and especially to indian markets and maybe because of that today we are witnessing
01:08good amount of sell-off in our markets uh it is down more than 500 points today so broadly we
01:14are of the
01:14view that we need to be very very careful in this market if there is a very short-term view
01:18then
01:18certainly stay away from taking any any short-term position in the market if there's a long-term
01:24position long-term view then only you should look for taking some bets otherwise it is better to be
01:29stay away for the time being despite the government assurance uh when it comes to the crude oil uh lpg
01:36gas cylinder png and cng that we are we are we don't have any issue while importing these commodities
01:44from uh the gulf and the state of home rules uh there is a kind of panic situation in the
01:51market
01:51uh what's your suggestion for the traders and the investors to not do any any kind of situation that
02:00may deteriorate the market further now see like this particular market is see right now means see we are
02:08not panicking in the market but and one should be very very uh watchful i'm saying instead of panicking in
02:16the market but the way the rise in crude price and we are like majorly depend upon the import of
02:25crude oil
02:26so whenever there is such type of scenario and if the problem the source of this particular problem is
02:32straight of foremost from where all these particular things are like getting exported uh if that is
02:40under let's say uh a lot of these uh uncertainties and uh uh the uh fear of uh furthermore uh
02:49extension
02:49of the war i think in that case we need to be careful and uh because of that only i
02:55think the market is
02:55preparing for that we can means it's very difficult to say in the past also when there was like war
03:01between
03:01russia and ukraine uh we saw oil prices move to the levels of 140 dollars per barrel this time we
03:09saw
03:09peak up to 120 dollars per barrel but in case on let's say any day war intensifies then in that
03:18case
03:18we can even expect the levels of 140 and maybe and see market discounts a lot of things well in
03:23advance
03:24so what is happening currently is like already has happened now what can be the possibilities
03:30on that the market starts discounting and i think a lot of aging is happening in the market
03:37because overnight risk is very very high yesterday also you can see that the markets were very close to
03:42uh 24 000 levels but today it opened 500 600 points lower only only on the because
03:49on the back of us fresh attacks on iran and now iran has also warned that they are he they
03:57are going to
03:58strike missiles on gulf nations so this is something which is new to the market this has not happened in
04:07the past you must have seen past may jitne bhi war huye kabhi gulf nations saudi dubai katar bhaerig
04:16he kabhi limelight mahi nahi aya but this time because of all these things it is like something
04:22which is really worrisome and we need to be careful in this market now considering the fact that uh
04:28they they still means like either either we like it or we don't but there is a kind of a
04:34panic
04:34situation or concerning situation among the traders and the investors and especially the people from
04:41india who uh who are looking for uh depository and looking for uh looking for cng lpg and petroleum and
04:50all uh do you think if the situation continues uh more panic may more panic situation may arise
05:00uh in couple of months yeah there is a possibility that tension can increase and if that increases
05:10then certainly we can see some more panic uh from investors uh the reason is because since last two
05:18years we have not seen any uh major last one and a half year we have not seen any major
05:23returns on
05:24investments and uh in last two years or three years if we consider the period of last
05:30let's say three years then a lot of new investors have joined to the market and they have not seen
05:35such type of unusual activity in the market so whenever there is such type of unusual market
05:41seasoned investors those who have spent let's say 10 15 years in these markets they can manage to
05:47this situation because still it is not out of control the market is down by just 10 12 from its
05:52high but during the covet time during the financial crisis time 2008 2009 uh during tech boom crash the
06:02markets were down more than 40 percent this is not the case this time and in the uh last let's
06:10say
06:10history of 30 35 years whenever there is a war or such type of escalation we have seen market to
06:17correct between 10 to 20 percent not 40 45 percent the way it crashes during the let's say pandemic
06:25or financial crisis so right now there is no at such any financial crisis but because of rising
06:32prices it impacts to the economy thereby it impacts to uh several sectors and based on those calculations
06:42uh the selling comes in the market so i am of the view that at these levels instead of panicking
06:51instead of taking or buying any uh falling knife it is better to stay away from taking any position this
06:59time at these levels if there is a direct impact of any on any sector uh then there we should
07:05be careful
07:05but otherwise i think in these markets it is better to stay away
07:09uh my last question to you sir uh with all these situations revolving and the government uh
07:16government helping and it's like uh communicating you know communicating on a daily basis uh
07:24they they are they are they are things that needs to be taken care of uh in which which relates
07:29to fii
07:30invest uh fii's fdi's uh but also means like there might be some uh impact that we can see or
07:38we can expect on the wpi inflation and cpi inflation your take we would like to know your take what
07:45can be done
07:46and uh how how can things be resolved in coming months to say like it's very difficult to say that
07:56what will be the next strategy of the government but currently whatever that they are doing they are
08:02doing at their best and i'm sure that they will find out something which will help to the uh uh
08:10let's say people at large and uh in the past also during the covet time during the financial crisis
08:17time government has taken a lot of initiatives in fact during the tariff time also the government
08:23has taken initiatives of rationalizing gst rates or removing tax for uh middle class people up to 12
08:30lack income i think all these majors really help to the economy to recover revive from the lows of 22
08:37000 to almost 26 000 again this time also the government is definitely means means already they
08:44are taking a lot of steps in the future also they are going to stay uh future steps but because
08:49here
08:50our money is involved and the risk is very high of increasing furthermore crude prices
08:58or geopolitical tensions because of that we are asking our investors to uh take some caution like
09:05instead of putting a lot of money in one go because the market has fallen uh it is better to
09:10take staggered
09:12view of buying on dips see if there is a long term view if there is a view of two
09:16to three years then
09:18in fact we are advising our clients to take some select bets in this market see whenever there is a
09:25panic in
09:25the market whenever you invest in panic most of the time it gives a lot of reward or to your
09:34risk but
09:35it takes time it's not that it is going to happen in next two three months and you cannot in
09:40fact expect
09:41also that the market will recover in one or two months it's not that easy it will take some time
09:47definitely but government is trying and government is definitely going to take a lot of measures which
09:53will eventually help the economy and we can again see higher levels in the market so our view is to
09:59just look for taking some um investment bets with a long term view with a view of next two to
10:05three years
10:06and if there is a short term view then just stay
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