September could be less volatile: PN Vijay

Excerpts from CNBC-TV18's exclusive interview with PN Vijay:

Q: How are you feeling about the rest of September, given that there is a Fed meeting coming up and we have done pretty well so far?

A: September has been marked by far less volatility than before and interestingly India appears to be slightly decoupling from global markets.

Right through August we saw India monotonously following global cues but this time we are seeing days when India is strong when the rest of the world is weak etc.

One tends to think that we are probably following domestic fundamentals more but the Fed meet is something very big and how much of it has been discounted into market prices is a moot point. One is looking for a calmer September and one is seeing quite a bit of HNI money coming in as a consequence.

Q: For now the goalpost seems to be whether or not the market can get back to its old highs, whether or not it can cross it, can a case be built for this market to trade at sufficiently higher levels from there and put on a lot more weight than the rest of Asia right now?

A: It is possible, in the sense that the Indian economy is probably doing better than most other Asian economies with possible exception of China and if you see the relative growth rates, India's growth rate has been much faster than China's in the last three years. So on fundamentals India has a very strong case to beat all other Asian markets and also if we assume that the problem in the world economic activity is really US related, India has least US related woes.

In India sentiment is a very large driver because of the way the derivatives and margin trading affects trading, so sentiment is more important in India than other Asian markets and that might lead to more volatility than other Asian markets.

Q: Do you think we will make new highs, will it be sooner orlater?

A: It might happen in next thirty days because for the first time I am seeing HNIs coming into the market, in the last ten days a lot of enquiries about coming into the market especially among HNIs and I think this could be still related to property prices falling, definitely in NCR property prices have fallen 15%-20%.

Art is getting a lot of money, people are buying art but it is possible that the domestic savings of HNIs would probably get into stock markets a lot more leading to more action in midcaps definitely but even in Index stocks so this could provide a good liquidity in the next one-two months.