Dharmesh Mehta, MD & Head of Broking at Enam Securities joins CNBC-TV18 to discuss the market outlook for today and going into future. Considering the economic and political turmoil in the State, we are lucky to be floating at current levels on the Sensex, he says. This environment calls for extreme caution since there is no margin for errors now, he warns. Any bad news could see an outflow that could impact the markets badly, Mehta says.
Mehta, however, trusts the India growth story. He says that once the macro situations improve, India would be the first of nations to see a good amount of inflow, especially considering that the majority abroad is under-invested in the State right now. Below is the verbatim transcript. Also watch the accompanying video Q: The Enam team is at Lords for the second time, cricket. Good time to be away from the stock market?
A: This is the best possible excuse you can get to get out of the equity market. Nobody is complaining and we are having a ball of a time right now. Q: How are you feeling about the market and the streak of underperformance we have got going again?
A: If you look at the current condition in India, especially with the interest rates, the oil prices, slowdown in the corporate world and the number of scams which are around, we are in fact lucky to be still above 18,000 on the Sensex. Q: Would you say the macro headwinds are all priced in now or are you feeling shaky about that?
A: There is no margin of error now, so any bad news will really impact us and the volumes are really bad. So any bad news and you have got some liquidity outflow that can seriously impact the markets. One has to be very cautious in this environment. Q: How bad is it looking where you are sitting? How is the mood in the US and the developed markets? Are people fearful of a big leg down?
A: Well it
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