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India a bright spot in the challenged global economy: Harsha Upadhyaya, Kotak AMC

The problems in the Indian economy are much lesser as compared to what you see globally, Upadhyaya said.

October 03, 2022 / 04:02 PM IST
Harsha Upadhyaya, CIO - equity, president at Kotak AMC

Harsha Upadhyaya, CIO - equity, president at Kotak AMC

India's economy has been resilient compared to other global economies and has done much better than most of the markets in the recent past, said Harsha Upadhyaya, chief investment officer (CIO) - equity, president at Kotak Mahindra Asset Management Company.

While he said that India has 'been a bright spot in an otherwise challenging global economy', the chief also acknowledged that the country's economy is likely to mirror the steep correction in global equity markets.

"While we have done much better than most of the markets in the recent past...we need to remember that we can't be new to the kind of volatility that is likely to be there in the global equity markets," he told in an interview to CNBC TV18.

"Having said that, I would say that the problems in the Indian economy are much lesser as compared to what you see globally", Upadhyaya added.

The CIO at Kotak AMC believes that investors who are buying stocks during the current market correction are likely to receive good returns in the next three to five years.

"So all the long-term investors who are using this as an opportunity to build their portfolios, or to increase equity allocations, will be doing well," he said.

Also read: Oktoberfest: 10-year trend shows market likely to see buying this month

Talking about the auto sector, Upadhyaya believes that the passenger vehicle segment is likely to see strong growth in the near term as the headwinds faced by the industry have been normalising.

"...we do believe that passenger vehicle segment is likely to see very, very strong growth and some of the headwinds that we have seen in the past, for example, the chip shortage or the commodity cost pressures, etc. also seem to be kind of normalizing," he said.

Upadhyaya expects the Indian market to be more resilient than the global markets and provide reasonably strong returns in the next three to five years.

"I think our market is going to be more resilient than the global market, I think that one can safely assume more diligence...so overall, I think, over the three to five year period, Indian market should definitely keep reasonably strong returns," the fund manager opined.
Moneycontrol News
first published: Oct 3, 2022 04:02 pm