ExpertSpeak: All’s not lost

Market Players At ET-Gujarati Meet Say FIIs Will Be Back Soon

CHIN UP when the chips are down. The climbing fear index (43 during the 1929 Great Depression and 75 in October 2008), is more disturbing than the slipping Sensitive Index. It took a good two-and-a-half hours and four of the country's best stock market analysts to reassure an 800-strong audience of Mumbai investors on Thursday that all's not lost. Every dip brings in a new buying opportunity was the message.
    The Economic Times, Gujarati, last week kicked off its latest initiative "Managing Financial Turbulence" by bringing the fourth edition of "Sensex Ni Sangathe" (In Tune With Sensex), a popular series of investor camps, to Mumbai. Eminent stock market experts Nilesh Shah, joint MD, ICICI Prudential Mutual Fund, Nipun Mehta, ED of Society General India Private Banking, CS Nanda, CCM, financial market investors protection committee, ICAI and Madhusudan Kela, head of equity investments, Reliance Capital Asset Management, reaffirmed their faith in the India growth story. The meet was jointly organised by ET (Gujarati) and ICAI, Western India Regional Council, at Bhaidas Hall in Vile Parle on October 23. What they said...
Forced liquidation is happening in the market. Fear (among investors) is at the highest level. This is the worst situation in the past 100 years and so an overnight recovery is not on the cards. While the Indian economy is growing at 6.5-7.5%, the world is already talking of a negative growth rate of 0.5% and 1.5%.
Madhusudan Kela
Head of equity investments, Reliance Capital Asset Management
There are some good developments which the market has ignored. This year, we had an average monsoon, Indo-US nuclear deal is now a reality, we received FDI worth $10 billion during the past two quarters, crude oil prices have fallen and inflation is expected to ease out in the coming days. It is just a matter of time when FIIs will be forced to back the winning horse (India).
Nilesh Shah
Joint MD, ICICI Prudential Mutual Fund
Prices are indeed attractive. It's like the latest McDonald ad campaign 'Aap ke Jamaane mein, baap ke jamaane ke daam'. Lot of Indian global acquisitions happened at peak prices, and now fund raising has become difficult for these companies. Still, impact on the Indian economy will be limited. Investors need to have a longer time-horizon and take a fresh look at their portfolio holdings.
Nipun Mehta
Executive Director & Head, SG Private Banking (I)

Nilesh Shah, Jt MD, ICICI Prudential MF, speaking at the ET-Gujarati investor meet in Mumbai on Friday