Chinese market crash may not affect us adversely: Prakash Diwan

In a chat with ET Now, Prakash Diwan, Director, Altamount Capital Management, shares his views on the market. Excerpts:

ET Now: FIIs bought in and in today's session, the Nifty has held on 0.5% and the broader markets are actively participating. Your view on that.

Prakash Diwan: This confidence stems from the fact that what is happening in China may not be after all such a bad thing for us given the kind of relative advantage that we offer as a promising market. You would realise that midcaps and small caps have lost quite a bit of ground in the last few weeks. In fact mid-December itself, we started seeing some erosion in value and now that the budget is around the corner, there has been a rate cut that has surprised people pleasantly. Mood is kind of fairly buoyant. There is a lot of money that we see coming in.

In fact, there are lot of fresh longs that are creating not just the short covering that typically happens in these situations and very clearly, it is now the Nifty that is wholeheartedly participating as much as the midcaps and small caps. So high beta trade is back in vogue and still lot of retail participation, HNI participation also that I can anticipate.