We have seen intermittent buying, but largely a downward trend, with domestic investors gung-ho while foreign investors have been selling. So how should investors approach this market?
If one parks the current volatility emanating from Middle East crisis, the market situation reflects a strong structural foundation built over the last 18 months. Equities represent part-ownership in a business, requiring a businessman’s mindset. Before the conflict, India addressed five critical areas: boosting domestic demand via tax cuts, achieving currency and rating upgrades to lower the cost of capital, improving export competitiveness, stitching trade treaties with 70% of world economies, and benefiting from rate cuts. These factors create a positive long-term outlook within our control.
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