The key point Prateek wants us to keep in mind for the coming months is that while our market may gyrate to global factors, there is nothing on the horizon which negates the improving fundamentals story of Indian companies.
When the world’s two largest economies slug it out in a trade war, global growth is bound to get impacted due to slower growth in both these economies.
Tariff wars can actually spell opportunity for many Indian businesses – many of whom are expressing more optimism than concern in their discussions with MO fund managers and analysts.
Expect FPIs to continue remaining sellers in the Indian market – more in tune with an overall risk-off sentiment than because of local factors.
Continued retail flows into the market and GDP and earnings growth numbers that will now benefit from low base effect of previous few quarters will both help in supporting markets from here on.
If market growth lags earnings growth due to global macro factors, Indian investors should use the opportunity to buy.