Investment advisor PN Vijay believes the growth story of Indian markets is intact. He advises investors to look at the good corporate results, buy on declines and make good money. He sees no reason for panic.
He believes India is a country that can show solid growth.
Excerpts from CNBC-TV18's exclusive interview with PN Vijay:
The market is down 428 points. Would you ride this out or sell into this?
I think I will stay off the market and watch what is happening. Clearly, there has been a sharp fall in Asian markets and India has followed suit. I still feel that for the Indian markets, the growth story is intact. Because of the weakness in the US market with its economic growth slowing down, India may see some stagnation in global flows. But Indian companies are doing so well. As of now, I think it is better to lay off.
What do you think that 2% swings?
We had enough volatility. The intraday volatility that we have seen in May 2006, is one of the highest that I have seen. Things are changing after some sort of a good economic recovery the world over in 04-05. We are seeing some correction, but the key thing is where does this leave India.
I think global investors may perceive India as a haven of growth because it is a domestic economy, a consumption-driven economy. If they want to see solid growth, India is one of the few countries, who can show that.
In terms of sentiment, is panic settling in now?
I do not think so. We had such a good bull market and people have made a lot of money. People are getting very anxious with all these overseas commentators talking about stretched valuations. My advice to them would be to look at the basics and take a bottoms up approach.
Look at good corporate results, buy at declines and make good money. I do not think the investors are panicking or should be panicking actually.
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