Nilesh Shah advises investors to follow asset allocation and moderate return expectations. If overexposed to equity, it s time to take profit and consider other asset classes like fixed income or gold. Underinvested investors can enter the market gradually through systematic transfer. Shah emphasizes being a long-term investor and mentions that while India is currently one of the premium valued markets on a one-year basis, it is one of the cheapest markets when considering a five-year view.
HDFC Bank s Q3 results indicate sluggish deposit growth, raising questions about funding credit growth. Debt mutual funds are grappling with lack of interest due to recent taxation changes. Retail investors show no inclination towards debt papers. If corporate India needs debt, who will provide the necessary funds? This situation could potentially raise doubts about the expected growth rates of the economy.
“Because there is cash waiting to be invested in the market across local and global investors, we will have to keep in mind that despite headwinds corrections will be shallower and the rise could be higher. The one big worry for markets will be policy stability. Today, the market is discounting continuity on governance and continuity of policies. If there is any change over there, then certainly there could be some reaction.”
“If you speak in terms of sectoral or sub-segment related valuation risks, probably defence, railways, all these areas have seen significant re-rating in recent times. Definitely from a medium to long-term perspective, there is a lot of growth and a lot of money to be made but one cannot extrapolate the kind of moves that we have seen in the past six or nine months.”
“Sebi has taken a step in the right direction by ensuring that this minimum amount is spread across the industry and not just a few fund houses like mutual funds and secondly, hopefully we will be able to reduce the friction cost, the KYC cost and the payment cost so that it becomes profitable transaction for the industry.”