It’s rainy day for overseas investors: Sandeep Nayak

What was your impression of the pre-budget meet?

Sandeep Nayak: Nitin Gadkari’s speech was an indication that the government’s efforts are going in the right direction.

Why are the markets falling?

Sandeep Nayak: Overseas investors, who invested in India for rainy days, are now redeeming. For example, the sovereign wealth funds in oil producing countries. They are not selling because they are fundamentally worried over India. It is a rainy day for them.

What is the market sentiment now?

Sandeep Nayak: People have gone into bearishness from extreme bullishness.People are overreacting objectively.

What are your expectations on returns from equities?

Sandeep Nayak: India’s price-earnings ratio (forward price earning multiple) is now 14.5x vs 17-18x a year ago. It is reasonable to expect 14-15% compounded returns in the next three years.