Evergrande crisis can be catalyst for market correction:
It has been a topsy-turvy week for the global equity markets, having to deal with
the Evergrande crisis in China. Will this event prove to be a catalyst triggering a market
correction? Or is the worst over? In this exclusive interview with Puneet Wadhwa, Kotak
Mahindra AMC Managing Director Nilesh Shah answers all these questions.
Concerns around China’s Evergrande crisis over now?
Evergrande more of a China problem than a global one
It’s China's ‘Lehman Brothers moment’
No global markets contagion, only a temporary setback
Some impact: Real estate slowdown, metal stocks to be hit
Will Evergrande ghost haunt global financial markets again?
Difficult to predict market sentiment
Events like Evergrande can act as a catalyst for market correction
Where will Nifty be after 6 months – 15,000 or 20,000?
Indian markets are fairly valued
Corporate results good, Covid cases dropping, ample money flowing
Evergrande crisis may force investors to look at India as alternative to China
Biggest risk to markets: surplus liquidity, inflation or retail investor frenzy?
None of these are risks
People sceptical about markets, but still want to invest
Indian market’s fundamentals should be a worry
We have a good opportunity to narrow economic gap with China
If PLI scheme delivers, we may well become manufacturer to the world
Investors looking for growth will then come to India
What about the opportunity the US-China trade war gave?
China is competitive; exporting more now than before pandemic
India needs to leverage its strengths sector by sector
US Fed has indicated a taper. Can global equity markets also take a breather?
Excessive liquidity has created excessive valuation in asset classes like cryptos
No such excess in the listed company/stock universe
First impact of liquidity taper will be on NFT market, cryptos, unlisted equities
The listed/stock market universe will be last to be impacted