FIIs concerned about policy paralysis post elections: Anup Bagchi, ICICI Securities
"On the macroeconomic side, there has been an EM contagion and our market also had a sell off on back of it," Bagchi said.
By 
| Updated:
| Updated: 
In a chat with ET Now, Anup Bagchi, CEO & MD, ICICI Securities, shares his views on the market outlook ahead of the elections. Excerpts:
ET Now: Are you advising your clients to remain fully invested ahead of the elections?
Anup Bagchi: Let me bucket this into three concerns. First of course is the election and if there is a stable government, it will be a positive. Although I must tell you that most of the investors do not know and make light of the fact that we have structural issues, coal availability issues, infrastructure issues and policy paralysis.
However, I would say that over 80% of investors think that if there is a stable government, the issues will get sorted out. Regional funds surprisingly seem to be quite confident that the issues are man-made and that they have seen such issues in other places as well get sorted out over time, if there is political stability.
On the macroeconomic side, there has been an EM contagion and currency contagion and our market also had a sell off on back of it, but investors are positive that in spite of that, the Indian currency actually has not depreciated that much.
It showed some signs of depreciation, but then it stabilised very quickly and they feel that all the actions that have been taken are positive and those have indeed stabilised the rupee.
ET Now: Are you advising your clients to remain fully invested ahead of the elections?
Anup Bagchi: Let me bucket this into three concerns. First of course is the election and if there is a stable government, it will be a positive. Although I must tell you that most of the investors do not know and make light of the fact that we have structural issues, coal availability issues, infrastructure issues and policy paralysis.
However, I would say that over 80% of investors think that if there is a stable government, the issues will get sorted out. Regional funds surprisingly seem to be quite confident that the issues are man-made and that they have seen such issues in other places as well get sorted out over time, if there is political stability.
On the macroeconomic side, there has been an EM contagion and currency contagion and our market also had a sell off on back of it, but investors are positive that in spite of that, the Indian currency actually has not depreciated that much.
It showed some signs of depreciation, but then it stabilised very quickly and they feel that all the actions that have been taken are positive and those have indeed stabilised the rupee.
Too busy to trade in stocks? Invest in Mutual Funds with ET Money!
Bookmark or read stories offline -
Download ET Markets APP
Download ET Markets APP
ADVERTISEMENT
