Pramod Gubbi of Marcellus Investment Managers says that India’s economy is consumption based.
For this reason, domestic conditions play a more important role in deciding the movement of the Indian markets.
Any recession coming in developed countries like America will have comparatively less impact on India.
New Delhi. If there is an economic slowdown in the world, then India will not be left untouched by it, but the market here will be affected a lot compared to other countries. This is to say of Pramod Gubbi of Marcellus Investment Managers. In Gubbi’s opinion, India’s position is very good as compared to other emerging markets. This is reflected in the recent fall in emerging markets.
Moneycontrol According to a report, Pramod Gubbi in an interview to CNBC-TV18 said that the reason for India’s strong position is that India’s economy is largely based on domestic consumption. For this reason, domestic conditions play a more important role in deciding the movement of the Indian markets. He said that India lags behind other emerging countries in terms of exports, due to which any recession in developed countries like America and Europe will have comparatively less impact on India.
Less fall in Indian markets
Some analysts believe that the Indian stock markets are looking different as compared to their emerging market counterparts, with the MSCI Emerging Markets Index losing nearly 21.8 per cent in the 12 months to August 31. At the same time, the MSCI India Index has fallen only 3.17 percent in the same period. Similarly, the Emerging Markets Index has lost 6.49 per cent in a span of 3 months. This shows the strength of the Indian market.
Bet on strong companies
Pramod Gubbi says that if inflation persists, then in this situation it would be better that investors include the stocks of those companies in their portfolio, which have strong pricing power of their products. That is, buy shares of such companies which have the ability to increase the price of their products to deal with the rising cost of production.
Auto sector boom
Pramod Gubbi believes that the market will see good growth in the next decade. This will benefit sectors like infra and financial. Despite the supply-related problems and the challenge of Kovid, there will be a recovery in auto stocks in the near term. Although there is still a problem with the supply of semiconductors, but it is much less than before. Now auto stocks will remain bullish for the next 2-3 years.
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FIRST PUBLISHED : September 12, 2022, 17:15 IST