Expert: The reopening of China may result in money leaving the Indian market
As China's market opened, there was a significant surge that lasted three days. The Chinese government is anticipated to work nonstop to boost the nation's economy. Trivedi also thinks that a portion of the money invested in India may end up on the Chinese market.
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The US is in the midst of another pullback rally, which has led to the first undershoot in inflation in a year. In an exclusive interview with CNBC-TV18, Gautam Trivedi, co-founder and managing partner of Nepean Capital, discussed his opinions on the current market and the outlook for the Indian market if the rally continues.
The Chinese government is anticipated to step up efforts to resuscitate its economy as the Chinese market opened and experienced a significant rally for three days. Trivedi also thinks that a portion of the money invested in India may end up on the Chinese market.
Trivedi attributed domestic retail investors' proactive investments in the Indian market to the low income rates offered by FDs in that country. However, once the yield momentum starts to ramp up, that can become stagnate.
In October of this year, systematic investment plans (SIP) inflows surpassed Rs 13,000 crore for the first time.
As a result, he anticipates that a lot of investment will shift to fixed-income plans.
Although major market gurus in the US have been calling for a recession and a correction, it hasn't happened in terms of the recession yet. Though the NASDAQ and S&P index correction has been in double digits, Trivedi said. "The US sees a violent bear market rally, making the NASDAQ act like an emerging market.
In this context, India is Asia's second-largest market after Indonesia. According to Trivedi, the Indian market is only down by roughly 5%. It has performed much better than MSCI Emerging Markets, which is down 26%. Additionally, it has outperformed China, whose market is down 32%. The Indian market has also performed better than the S&P, which is down 16 percent.
The expert stated, "I think we've had a very successful year so far, and there is more positivity coming through.
Indian markets have benefited more in the past 18 months from local demand brought about by both individual and institutional investors. However, "While money will continue to be invested in India. However, as yields have improved, a growing portion of their spending will shift to fixed income ".
