Welcome to ETMarkets’ Investors Guide, a show about asset classes, market trends, and investment opportunities. This is Nikhil Agarwal.
While there are concerns over a looming recession in the US, such fears have been keeping commodity prices under check, offering a short term respite to India. But the rupee weakness has continued and it looks unlikely that foreign outflows will halt soon. Eventually, if US markets see weakness, the domestic market may follow the suit.
ETMarkets caught up with AK Prabhakar, Head of Research at IDBI Capital, to know how these developments will impact domestic stocks and his piece of advice for investors. Prabhakar sees the recent fall in crude oil prices as temporary. He does not see markets to see a meaningful rebound at least till Diwali or by January 2023. Here’s what he told us:
If we look at commodity space, metals and crude oil prices have started falling, largely due to global growth concerns. How would you read these developments as far as India is concerned?
The US Fed has said ‘soft landing’ of the US economy would be challenging. How would such an environment impact foreign outflow? Should we expect more pain ahead?
Given how tough it has been for the stock market in the first half of the calendar, what should one expect in the second half?
Any sector that you think has seen unwarranted fall and is attractively valued?
What would be your advice to investors?
Thank you Mr Prabhakar for the insights.
That’s all in this week’s special podcast. Do keep checking this space for more interesting content and take time out to follow our market podcasts twice every day. Stay safe and Happy Weekend!
(Disclaimer: Recommendations, suggestions, views, and opinions given by the experts are their own. These do not represent the views of Economic Times)