Alok Sama of Baer Capital Views on Market

It is good to listen to expert views as they are expert in their fields and at times they may have access to info which is not available to general public. Alok Sama of Baer Capital Views on Market have been captured and same are as appended below to get benefit.

Quite candidly, I think the bull case for India right now is more a function of global liquidity and global risk appetite increasing. So its more liquidity driven FII’s that force the markets to go up. Once you get India specific, there is actually a lot we are worried about in the medium and long term. You have got a situation where inflation continues to be a major issue, the cost of capital is higher and interest rates are really biting. I mean it’s not just the industrials, capital goods and construction that’s suffering, but even consumer durables, auto sales being a great example. So in a way, it’s almost a perfect storm. Domestic demand is not quite as robust as we have been used to, you have got very high cost of capital and you have got inflation which again will have an impact on demand. Add to that the fiscal picture and the balance of payment picture and the pressure is on the rupee because to the degree that there is a pullback in terms of flows into India.

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