Investors got a lot of relief in Indian stock markets on May 12, 3 percent faster. However, on 13 May, the markets were under pressure in early trade. Right now there are more AC news which are positive for market and economy. Ceasefire with Pakistan. There has been a deal between the US and China on the tariff. There is free trade engagement in India and Britain. Russia has indicated an agreement with Ukraine. Moneycontrol interacted with Lion Hill Capital founder S Krishnakumar to understand the market’s picture.
India will emerge as a leader on global scenario
Is the confrontation with Pakistan over? In response to this question, Krishnakumar said that it is difficult to guess about this. If it becomes clear by looking at history, then there is a conflict with Pakistan from time to time. However, it is expected that India will emerge as a leader in the new global scenario. The government’s financial situation may have a slight impact. However, the focus of Prime Minister Narendra Modi’s government is on fixing its financial situation. War cess cannot be denied for a short time. The government can take such measures, which will be excited to increase private sector investment.
Market moves will depend on revenue and earnings growth
How can the market move further? In response, he said that revenue and earnings growth are the most important for markets. Especially when the Nifty has remained down just 6 percent from its previous high after strong recovery. The performance of the market in the next six months will depend on the Eringes upgrade. Right now growth dynamics and confidence are weak. However, the atmosphere will change as soon as the picture is clear about exports. There is a need to be a little careful in such a situation. Wait in the short term and see that the policy will be fine.
More investment can be seen in China
What will be the impact of India in America China? Krishnakumar said that it is firmly beneficial for China. Even though for a short time, the way the decision to increase the tariff has been withdrawn, it indicates that the two countries are ready to resolve through mutual differences. China’s valuation is less than India. Second, the Chinese market has been poor for a long time. In such a situation, more investment can be seen in China. This can affect investment in India.
Short term does not expect much boom
He said that after the recent boom in Indian markets, the valuation has increased again. Because of this, the market is not likely to rise much in the short term. However, the picture may change if the purchase of foreign institutional investors increases.