Vikas Khemani has cautioned that supply‑side disruptions and ongoing geopolitical tensions from the Iran war are likely to weigh on India Inc earnings over the coming quarters, even as the worst of the crisis appears to be behind for the market.
Earnings in the first half of the current financial year are expected to face pressure due to supply concerns, while a partial impact could also be visible in the fourth quarter of the last fiscal, Khemani, founder and CEO of Carnelian Asset Management which manages nearly Rs 14,000 crore, told NDTV Profit in a televised interview on Tuesday.
The benchmark Nifty 50 index has corrected 12% from its peak in January. Foreign investors have pulled out over Rs 1.5 lakh crore.
Despite near‑term challenges, he expressed confidence that the peak of the crisis may have passed. However, elevated oil prices are exerting pressure on India's currency reserves, adding another layer of macroeconomic stress.
"This has happened before. Markets bottomed out after Ukraine War, after the Covid lockdown. We then recovered after some time," he said, giving examples of the previous instance Indian equities plunged.
On a more structural note, Khemani remained optimistic about India's long‑term outlook, highlighting that the country's demographic trends are well‑placed to support growth. At the same time, he acknowledged that heightened uncertainty has already dented corporate profits, underscoring the need for caution in the near term.
Watch the full interview here:
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