Tuesday, March 27, 2018

Long term optimistic on India

India from a longer term point of view is still a good proposition but India is not exactly a problem-free country. There is leverage in the system and there has been fraud and there are still some unsettled political events that may happen. 

I would say given that the market has actually rallied very strongly over the last few years and that we have reached a high at 36400 on January 29th , we could easily decline by around 20% from the highs that would take us below 30000. Long term, I am optimistic but we have to realize that if one asset class goes down, fund managers will also sell another one even though the fundamentals may be favorable but they just get out and build up their liquidity because on institutional side, the funds are holding very little liquidity. So, they may build up liquidity and that can then bring about selling pressure everywhere. 

via economictimes