Dipan Mehta, member, BSE and NSE calms investors' concerns regarding the reduced FII inflows and says that the flow of funds will resume when the overall uncertainty in the country recedes. Speaking to CNBC-TV18, Mehta advises investors to book profits in Infosys and wait till a clearer picture emerges from the management commentary.
Below is the edited transcript of the analysis on CNBC-TV18
Q: The markets were all over the place today. What would your advice to investors be?
A: The markets are definitely in a highly volatile situation and investors – especially from the retail segment - should stay away because there is far too much uncertainty in the market due to the capricious political environment the earnings season and the Reserve Bank of India (RBI) policy.
Investors planning buy to stocks after an 8-10 percent correction better wait for more certainity before implementing their decision.
Q: How worried would you be regarding the considerable reduced FII inflows?
A: Some of these trends are not permanent. The Japanese central bank has unleashed another fabulous round of quantitative easing similar to what the Federal Reserve has done. This has considerably improved the global liquidity position. FIIs are stay away due to increased uncertainty and will resume when the domestic environment improves.
Q: What is your outlook on Infosys?
A: The problem is that Infosys, after a long time, is rallying into its results. The way the stock prices have moved indicate that some kind of expectation has been built in and is not a very comfortable position to be in. I would advise investors to book profits as far as Infosys is concerned till a clearer picture emerges.