In Short: Kotak AMC’s MD suggests that every correction is an opportunity to buy Indian stocks. Foreign investors exiting Indian markets will have to pay twice as much to return. However, he advises investors with a one-year horizon to stay away from equity markets. FIIs have continued selling heavily in Indian equities, offloading over Rs 21,000 crore worth. The Indian banking system has become more conservative in recent years, with $35 billion new credit lines added monthly.
The MD of Kotak AMC stated at the CNBC-TV18 Global Leadership Summit that “we are at a stage where every correction is an opportunity to buy.” He added that foreign investors who have left Indian markets in recent weeks will have to pay twice as much to reenter them. But Shah added, “Avoid the equities markets if you have a one-year investment horizon. That will surface eventually because India is a growing threat. After making significant sales in October, FIIs carried on with their November sales, selling more over Rs 21,000 crore worth of Indian stocks. Arora discussed the current drop in Indian stock prices.
“India’s performance has been pitiful. These things take six to nine months to change; they don’t change in three months. The selling by foreign investors should stop in a few weeks. He declared, “I will short consumer names and microlenders.”
“You should not keep saying FIIs are leaving India to go to China, it is because India has had pathetic earnings,” Arora stated. The Indian banking system was impacted by Vaidyanathan.
“In India, things are incredibly robust in their core. However, guardrails are now more robust. New credit lines totaling $35 billion are added each month. Thus, in recent years, the Indian banking system has grown more conservative,” he stated.