Market can correct if there is risk aversion: UBS Securities

ET Now caught up with Suresh Mahadevan, Head of Research, UBS Securities, to find out how global moves can affect the Indian stock market.

Post the kind of big bang move that we saw across the global markets on Monday. Do you think investors seem to be unconvinced about the news flowing out of Europe?

In the short term, it is really difficult to gauge how things move because some news flow could come from somewhere and then again, there are two schools of thought. India is pretty much a domestic-driven and consumption-driven economy. We may not be as affected as some of the more export-oriented players. My view is that if I look at India broadly within the emerging market universe, a lot of investors are perhaps not overweight India; they are still neutral, they are still underweight. Given we can deliver the data points, we will continue to attract money which will not only help our economic growth but it will also help drive markets better in terms of demand for stocks. In the short term, the market can correct. It has gone up quite substantially and it can certainly correct if there is some risk aversion.