Oil prices, rate hike may up market volatility: Baer Cap

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Indian market is hit by global turmoil and adverse impacts of the same have already started showing up. Deepak Shahdadpuri, managing director of Baer Capital Partners said that the GDP growth rate of India will remain 8% and commodities will have a long-term upward trend on the back of the global worries.

Talking about the FII investment, Shahdadpuri said that global investors are looking for safe entry point into the Indian market as there are deep concerns over inflation figures and commodity price hike. Since Indian market is sensitive to crude prices, it may witness the downtrend again on oil rate spike. FIIs want to play safe in such situation.

He also added that the RBI may also raise the interest rate further, which is likely to make market volatile.

However, on the positive side, he said, "Private equity appetite of FIIs to invest in India has remained strong and there will be more private equity deals in India's infrastructure and power sector as they are priced at discount to champion share price (CMP) in last three months"

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