Dharmesh Mehta, managing director and CEO of Axis Capital, spoke to CNBC-TV18 about the current trends in stocks market and outlook.
“It is a temporary phase because the global factors are not in India’s favour. You have a sliding rupee which is more of an emerging market issue rather than only India. So clearly, there is some nervousness based on that. Investors get hurt most especially the foreign investors when the rupee slides because it is a big underperformance. So they have been hit by the current fall plus the rupee fall. So there is some nervousness on it. Crude is also somewhat concerned but it is still not an alarming thing. I would say rupee and interest rates going up will be the key concern for the markets,” said Mehta.
Speaking about the rupee depreciation, Mehta said, “For the existing investors that is obviously going to be a worry because the underperformance has hit both ways, the market fall and the rupee fall but for new investor, rupee fall is great because he can put lesser money to get more INR value to buy stocks. So for a new investor, this is an ideal time coming in because the rupee is at its lows and an old investor has got hurt because the rupee is depreciated.”
“The corporate inc is getting more bullish and the earning cycle has to now come back and the fundamentals are much stronger than earlier,” said Mehta.