We also speak with him about the investment approach at his AMC and how he avoids wealth-destroying stocks. Gopani also gives advice to investors regarding how to deal with corporate-governance issues.
The markets have been falling over the last few months due to rising inflation and interest rates around the world. What's your short-to-medium-term outlook for the market?
We are in the midst of unprecedented times in terms of global macro - from multi-decadal inflation prints to deep recessionary fears and spiking interest rates. For risk assets like equity, a global repricing has been underway for the better part of nine months as markets factor materially higher interest rates. The resulting headwinds have been prime drivers for market volatility across the board, including India. We believe that the bulk of this has already taken place, with broad market gauges down 15-20 per cent and some highly speculative assets down up to 60 per cent.
By comparison, India has been relatively less affected across equities, fixed income and currencies on account of our economy's ability to sustain market downturns. Monetary and public policy have had a material, yet hidden, role in this resilience.
FPIs, who have historically held roughly one-fourth of the largest 200 companies in India, have been prime sellers as part of their wider reallocations away from emerging markets. This basket selling has led to a correction of excesses in the Indian market. Coupled with robust earnings, valuation metrics for Indian companies today look significantly more attractive than they did 12 months ago. Despite the weak external environment, relatively strong corporate earnings have surprised most market participants in India.
Bu hikaye Wealth Insight dergisinin August 2022 sayısından alınmıştır.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber ? Giriş Yap
Bu hikaye Wealth Insight dergisinin August 2022 sayısından alınmıştır.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber? Giriş Yap
Bad ideas, F&O trading and the market
Find out the mindset required to find success in F&O trading
Licence Raj Redux?
The import policy changes might take us back to the days of License Raj
How to do magic
Getting great equity returns sustainably only looks like magic, it actually isn't
Data protection and cyber security
The increasing need for cyber security is opening up investment opportunities
"Buying is dependent on pricing but not on timing"
Insights of a fund manager at PPFAS Mutual Fund
Pro vs Amateur
Can amateur stock investors be better than pros? Yes! Here's how
The dimming of Brightcom
Shedding light on irregularities at the Brightcom Group
First tryst with profitability
Find out if food aggregators have found a cure to their loss-making curse
Have We Crossed The Peak Of Inflation?
Find out if the present macro scenario calls for tweaking your portfolio strategy
Tomatonomics
The humour, the stories and what could have been done about tomato inflation