"CONSTRUCTION, INFRASTRUCTURE and CAPITAL GOODS related Companies will Create Wealth for Investors in this New Samvat"

What is your opinion about the Samvat gone by?

Last Samvat was a great one for the Indian markets for many reasons but one clear emerging trend did manifest and that was very encouraging. On multiple occasions during the year, even recently we had seen continuous selling by FIls due to risk aversion creeping in on account of global events. Earlier this would have led to major crash in Indian markets with huge selling pressure coming in, on a continuous basis. However, during the Samvat gone by, in spite of bouts of vigorous FIl selling, Indian markets did not really crash and we did witness support at every fall and markets turned around very quickly. This was predominantly on account of significant buying by retail, HNIs and domestic institutions. In fact, at present the incremental SIP flows coming to Mutual Fund industry on monthly basis is more than US$ 2 billion. This provides a massive cushion which is why the markets did not sway based on the moods of foreign investors. We expect this trend to continue strengthening and add more muscle to Indian capital markets through regular large domestic inflows.

What you feel about the current global tension. It's at two fronts - Russia-Ukraine and now Israel-Hamas. How much, in your opinion, impact it will have on the stock markets?

Unfortunately, the world is currently witnessing massive geo-political upheavals. Both Russia- Ukraine War as well as Israel-Hamas conflict has changed the global equations and established risk modules. It is extremely difficult to predict the direction and duration of these conflicts. It definitely destabilizes established ways of doing business and creates challenges in the existing supply chains. All these lead to unpredictable vagaries in commodity prices leading to major pressure on corporate profit margins.