“If I just put on my hat from the foreign investors’ perspective, when you look at investing into a market like India, you are primarily focussed on the domestic story. The consumption side of the economy, the financial sectors, consumer discretionary, etc, are the areas which are most attractive,” says Jonathan Schiessl, Deputy Chief Investment Officer, Westminster Asset Management
Over the last two to three weeks we have seen a very solid recovery when it comes to the Indian markets apart from the last two to three sessions. Is it too early to say that the bottom has been made or will this volatility continue?
Yes, the bounce was obviously very rapid. We have seen rapid bounces in international markets, US in particular. We are now seeing a bit of profit taking ahead of some Fed speak towards the end of the week. It has impacted global markets and with a strong dollar as well, clearly India has come under a bit of pressure.
We have seen quite a lot of foreign inflows in the market over the last few weeks and it is no surprise that profit taking is coming in ahead of a central bank type of event.
From the recent low, the runup has been 15-16%. Do you think these are the new normal levels in the Indian market, given that inflation dynamics is favourable? China is in a mess; earnings have not been that bad. Do you think plus minus 5% is where Indian markets would settle
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