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News Topical, Digital Desk : Stock market crash: Amidst rising tensions in the Middle East and crude oil prices surpassing $100, there are fears of sharp fluctuations in the stock market. Vikas Khemani of Carnelian Asset Management believes that the market could see a decline of up to 10% in the current situation. However, he says there is no need to panic. He believes that investors should invest slowly during this time, as the fundamentals of the Indian market remain strong in the long term.

Question: How much impact could Middle East tensions have on the market?
Answer: Vikas Khemani of Carnelian Asset Management believes that the stock market could see a decline of up to 10% in the current situation. Rising tensions in the Middle East and rising crude oil prices are raising investor concerns. However, he says this decline will not be permanent and could be viewed as an investment opportunity. 

Question: What did Khemani say about the developments in Iran?
Answer: Khemani said that if Iran is retaliating despite major losses at the leadership level, it means it has a plan in place. This indicates that tensions may continue for some time. In such circumstances, it is natural for uncertainty and volatility in the markets to increase.

Question: What could be the future course of the Indian market?
Answer: Khemani believes that in the coming weeks, the Indian markets will be largely driven by news. One news item could cause the market to suddenly plummet, while another could trigger a sharp rise. He said that during geopolitical crises, the reliability of information is often low, making it difficult to predict short-term movements. 

Question: What strategy should investors adopt at this time? Answer: Khemani advised investors to invest gradually rather than investing all their money at once. If tensions in the Middle East escalate further, the market could decline further. In such a situation, investing in a phased manner can reduce risk and enable better average investment. 

Question: Which sectors are considered better investments at this time? Answer: He says that sectors linked to domestic demand may be safer options at this time. These include banking, pharmaceuticals, and consumption sectors. He also advised avoiding sectors that are more dependent on the global economy. 

Question: What is his outlook on the Indian economy? Answer: According to Khemani, India's economic fundamentals are strong. The country's debt-to-GDP ratio is controlled, the banking system is robust, and inflation is under control. Furthermore, the fiscal deficit and current account deficit are also under control. Corporate funding is improving, and there is economic stimulus from the government. 

Question: Are risks and uncertainties always present in investing? Answer: Khemani says that risks and uncertainties are always present in the investment world. According to him, there has never been a time when investors did not face any risks. Factors like elections, global conflicts, and economic crises continue to influence the market. 

Question: What has been the long-term record of the Indian stock market? Answer: Khemani stated that the Indian stock market has performed strongly over the long term. He stated that the Indian market has delivered a CAGR of approximately 17-18%, which is among the best in the world. This makes India an attractive and reliable investment market.


Read More: Stock market crash: 'Will the stock market fall by -10%? This is where investors' opportunity lies.'

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