ETMarkets Smart Talk: After a blockbuster FY24, watch out for rupee depreciation and monsoon in FY25: Dr Poonam Tandon

economictimes.indiatimes.com:

“One of the important risks to the macro environment this year is rupee depreciation and consequently its impact on CAD,” says Dr. Poonam Tandon, Chief Investment Officer at IndiaFirst Life.

In an interview with ETMarkets, Tandon said: “Another challenge is the monsoon (if it's going to be a normal one with good spatial distribution) as food prices are already at elevated levels,” Edited excerpts:

It has been a volatile month so far – what is fueling volatility in the markets?
Dr Poonam Tandon: This month has been volatile for equity markets as a few announcements by the regulators caught the market by surprise – be it restricting IIFL Finance to disburse fresh gold loans followed by restriction on JM Financials for IPO financing and later the ED raids as reported in the media.

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MFs were also asked to submit liquidity stress tests for their mid-small schemes. Subsequently, several MFs have said to restrict more inflows into small-mid cap schemes.

The electoral bond issue was another factor adding to the panic. Apart from the domestic issues we have the Fed Reserve meeting which is expected to give guidance on the future rate cuts.
Although the current situation seems tough, we see it as temporary and believe markets will come back to normalcy.

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