Kalpen Parekh says: “Election is not a matter of worry. If something is a matter of worry, it is global geopolitical issues and how global flows move because we are more expensive than some of the other EMs. If flows turn, it could be a matter of worry and that can lead to intermittent volatility of 10 to 20% which happens every 18 months or two years election or no election.”
“We are a country with 5-8% inflation. Every year, the value of our money keeps going down. So not investing is a much bigger risk. The comfort of short-term safety blinds us to the long-term risk that we have if we do not increase our purchasing power. These are a few things to keep in mind.”
“I am not much concerned about the market valuations. We have a lot of good opportunities coming up on the large cap side and it is going to be a market of stock selection going forward.”
Inflation, especially in the developed world, has been on a declining path. Since 1990, the trend has been particularly more ‘dis-inflationary than otherwise.