‘Market will surprise us … ‘: Udayan Mukherjee’s take on what lies ahead for Indian equities
Udayan Mukherjee, Global Business Editor, Business Today TV, spoke at length on various topics, ranging from stocks that have performed exceptionally well to the way forward for markets, in a special show on ‘Muhurat’ trading this Diwali.
On the way forward for the stock markets, he said, “My expectation is that market will surprise us … I don’t know which way because right now everybody’s expectation is that the next 3-4 months will be very volatile. When they say volatile, they probably mean that the market will correct. That’s the sort of euphemism people use for a downbeat prediction in the market. They say that the next 3-4 months will be volatile and then things will start improving. So basically, that means that the people are waiting and sitting on cash. They are waiting for the markets to correct because of the global doom which is when they will invest the money and deploy the cash and then the market will go up and reward.”
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He further underlined that markets usually have a habit of surprising.
“If that is the consensus, the markets might do the opposite and it might actually rally first and defy all the expectations of a correction in the near term. And just when you begin to feel that behind you … then the markets — due to sort of earnings, slowdown and global inflation problem (sometime next year) — a correction may happen. That would be more painful as the correction would have knocked you back. But I think this kind of surprise we amply expected over the course of the next few months because we are in very uncertain times,” Mukherjee said.
“Very unprecedented kind of terrain we are living in. The only thing to do is to change your timing. Not look for the next one year but say what will happen in Diwali three years out and then it becomes probably a slightly better chance of success in predicting what lies ahead. That’s exactly what the Indian investors seem to be doing. They would be saying … okay … we take your notes of caution onboard but we are here for the term and we would take the volatility in our stride and keep getting invested in the market,” he added.
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Lauding Indian stock market investors, he said, “Hats off to the maturity of Indian investors. I have not seen in the last 20 years this level of maturity. And I hope that their maturity pays off without them being brutally hurt over the course of next 12-15 months because of some global problems.”
Meanwhile, Indian equity benchmarks failed to keep the momentum going in the previous session after starting Samvat 2079 — Hindu calendar year — on a high note. The domestic indices are closed today on account of Diwali Balipratipada.
