As market narrative turns negative, look beyond a few quarters and put more money to work: Rajeev Agarwal
Rajeev Agarwal, Fund Manager & Managing Partner, DoorDarshi India Fund, says many times, it is not about whether the business is a good business, but if the price is good enough? It is more of trying to be very careful with where the price is versus what we think the value is. And being conservative, many times they have to exclude some of the market darlings.
Agarwal also says Indian markets have experienced significant gains, and we are beginning to observe a phase of consolidation. He anticipates that capital expenditure will start to increase, and the Indian economy to perform well, leading to a resurgence in earnings growth.
All the action seems to be happening in the US right now and it is really the dollar which is pulling the reins for emerging markets also?
Rajeev Agarwal: Trump inauguration is next week and it will be interesting to see how the policy measures that everybody has been talking about start showing up. In fact, Trump is talking about a weaker dollar. The fact that the dollar is running up and yet Trump is trying to encourage more exports out of the US, it will be interesting to see whether Trump policies impact the dollar strength that we have been seeing for the last few months.
But is it going to be as simple as that? If the dollar eases off, will the money move to emerging markets like India or do you think India's problems with slowing growth, inflation challenges and earnings getting dented as well, will also have a role to play?
Rajeev Agarwal: Absolutely, All of that will have a role
