'India is going to continue to remain a domestic consumption-driven market'

Font Size

Print

Feedback

Email

Discuss

Related Articles

‘People still prefer piracy to paying for world ci...

: Krishna Sanghvi, vice president equity, Kotak Asset Management Company, speaks with Abhay Rao of the Financial Express about their mutual fund investing strategies, key areas targeted for investing and what are the factors affecting our markets that will come into play over the next few months. Excerpts:

•What are the fund managers and AMC's currently thinking in terms of investing in the equity markets?

Speaking from a fund manager's perspective, these times are awfully confusing, for one is going through a phase where there are too many uncertainties and variables to come to a clean conclusion about the future. The financial markets are faced with many unknown factors affecting it, which makes foresight difficult. However, while this is the case on one side, the fact remains that the index from a stand alone point where it is today, offers a lot of great valuations. The Sensex is something we are definitely bullish on, even while we remain uncertain about the global economy. With the meltdown having spread from the US and European markets, their banks and underlying economies still remain a cause for concern.

Currently, another factor playing heavily on the mind of many financial firms is the impending elections. With the election season being a major variable in all aspects of the country, the markets are no different. The common sense the market seems to have is that there will be a coalition government formed, but as far as which coalition, one would have to wait and see.

The financial slowdown coupled with political unpredictability has led most players in the market to even, at this point and level, remain cautious and conservative in their investments. Discretion seems to be the key now. We too would like to be at a 20% cash level, reduce unnecessary equity exposure and rethink our portfolio allocation as things get clearer. Right now, creating a strong defensive portfolio is the key.

•If one were to take certain chances on the equity markets now, given the valuations offered, which sectors would you go in for and why?