Indian equity markets could stay volatile in the short term but there are high chances of a bounce-back in the second half next year as the commodity price rout slows and earnings growth picks up.
A top panel of leading financial market experts
‘Markets 2016: Revival or Disappointment’, cautioned investors about a resumption of heavy FII selling amid further decline in crude oil prices in the new year. It comprised Neelkanth Mishra, India strategist at Credit Suisse; S Naren, chief investment officer of ICICI Prudential; Nilesh Shah, chief investment officer of Kotak Asset Management; and Raamdeo Agarwal, joint managing director of Motilal Oswal Securities.
Rearnings should pick up in the second half as commodity prices stabilise, Our Expert Say commodity sell-off as unprecedented and warned that our banking system would be hit by the global carnage.
“In Commodities, what was built in last 12 years was destroyed in just 18 months. There was massive destruction of wealth last year and that destruction is still on.”
“To me it looks like 2016 should logically be a year where pain bottoms out and from there things should improve. I feel that whatever worries we have should peak out and disappear. Consequently that itself should help towards resolution of assets in 2016. As such we have a very positive three-year view with huge volatility.”
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