Indian equities this week sidestepped concerns around a potential debt crisis in China and the US Fed’s suggestion that it would be tapering its asset buying program soon.
The Sensex hit the 60,000 mark on Friday while the Nifty50 ended near 18,000 level. Both the indices are up over 135 per cent from their lows of March 2020, and are quoting valuations that have not been seen before on these shores.
When markets enter such unchartered territory, investors always face a dilemma over whether to go all in or back out a little.
In order to answer this seemingly difficult question, we caught up with Mr Anand Radhakrishnan, Managing Director and Chief Investment Officer for emerging markets equity – India, at Franklin Templeton.
Q. With global issues coming to the fore after what has been a strong year-to-date market for investors, does it make sense to take some profits off the table?
Q. Given what is happening with China, global growth outlook and the prospects of central banks withdrawing liquidity. How do you view the entire reflation trade that was such a dominant talking point throughout the last 12 months?
Q. Franklin Templeton has been loading up on some financial services and banking names over the past two months. How bullish are you on that space and why?
Q. There has been a lot of talk about inflation and tapering being a risk to the market, but do you sense that perhaps the potential of earnings disappointment is perhaps the biggest risk for domestic equities over next 12 months.
Thank you Mr. Radhakrishnan for a very intriguing conversation.
That’s all in this week’s special podcast. Do keep checking this space for more interesting content and take time out to follow our market podcasts twice every day. Stay safe and have a happy weekend!
