The halcyon sea of Indian markets suddenly turned stormy for many novice traders and investors since mid-October. But instead of experiencing a Titanic moment, Indian markets have barely budged. A correction of 7%-8% from the top doesn’t really mean much considering the relentless selling by Foreign Portfolio Investors (FPIs).
In March and April 2020, FPIs had sold Rs 69,000 crore of Indian equities on an aggregate basis. And what happened thereafter is a much-discussed history now. This time the quantum of outflows has been higher.
The clouds of uncertainty are casting shadows over the markets at present. And to offer clarity to our readers, we invited Nilesh Shah, Group President & Managing Director—Kotak AMC, to share his perspective on the present market conditions.
As you know, there are too many moving parts to the market at present—rising inflation in the developed world, potential rate hikes and the rollback of stimulus in the US, rising oil prices and geopolitical tensions to name a few. Can Indian markets survive this difficult phase?
He ended the conversation suggesting that if LIC IPO recreates the Maruti moment of 2003, retail participation may become a dominant force for Indian markets going forward.
Quick recall: After the dotcom bust, the markets experienced a challenging phase between 2000 and 2003. However, the positive momentum created by the strong listing of Maruti Suzuki in 2003 was a decisive factor for the return of bulls on Dalal Street.
Will LIC create a déjà vu moment? Do let us know what you think.
You may also like to read: 5 things that make the LIC IPO an interesting proposition
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