ETMarkets Smart Talk: Why are FIIs looking at midcap companies? Dr Poonam Tandon decodes
“FIIs also who have missed the rally in Indian markets also are looking at mid-cap companies with better earnings visibility and for better growth opportunities,” says Dr Poonam Tandon, Chief Investment Officer at IndiaFirst Life.
In an interview with ETMarkets, Tandon said: “We do believe renewable energy is one of the emerging sectors of the next decade. Nearly 80% of energy requirements are met by coal, oil, and biomass” Edited excerpts:
Will another rate hike by the US disrupt equity markets?
The minutes of the US Fed’s last policy meeting indicated that interest rates may have to remain higher for longer given the uncertainty around the inflation outlook in the US.
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Offering CollegeCourseWebsiteIndian School of BusinessISB Chief Digital OfficerVisitIndian School of BusinessISB Chief Technology OfficerVisitIIM LucknowIIML Chief Marketing Officer ProgrammeVisitThough inflation is coming down, it remains well above the US Fed target of 2%. Post the FOMC minutes release, and probability of another 25bp rate hike has increased.
We feel that this will keep the global financial markets nervous regarding what the Fed will do in the next policy meet as earlier expectations were that we are nearing the end of Fed’s monetary tightening cycle.
Nevertheless, India is well placed to overcome the global financial stress as the domestic growth dynamics remain strong driven by infra capex and recovery in real estate cycle coupled with a strong banking system.
ETMarkets Smart Talk: Aashish P Somaiyaa explains why India will stand out compared to peers, especially the US
The corporates are also deleveraged and are steadily showing growth momentum.
The US Dollar
