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Don’t see huge blow to economics of Indian market from Russia-Ukraine conflict: Jigar Mistry
Jigar Mistry, Co-Founder of Buoyant Capital, says that from a fundamental perspective, the Russia-Ukraine conflict impacts oil prices and in turn India’s current account deficit, but doesn’t not impose a huge issue in the economics of the Indian market.
“Emerging markets become risky, so flows might continue for slightly longer, and the domestic situation doesn’t get addressed… After years of clean-up, you are probably looking at one of the finest fundamentals for the last 14-15 years, and the fiscal impulse was very solid. The monetary support continues despite hawkish stance elsewhere in the world and corporate earnings have been reasonably resilient. Besides FMCG, I think, a number of banks and life insurance and consumption growth have been fairly strong,” he says.
“The median correction in stock prices is somewhere around 27-28 percent and people are no longer aggressively looking to buy the dip… I would take a month, look at the liquidity conditions normalise, and then pick up on the fundamentals again. I think expectations are tapered,” he adds.
His advice: It is a good time to re-evaluate the market and use that time to build a reasonably resilient portfolio.
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