Indian equity markets will remain range-bound on lack of any positive near-term triggers, Arvind Sanger, managing partner at Geosphere Capital said. “I don't expect any V-shaped recovery anytime soon.”
The NSE Nifty 50 closed below the 10,000-mark for the first time since Oct. of last year as the nation's stocks joined a global selloff triggered by prospects of a trade war.
The index has now declined over 10 percent from its Jan. 29 record closing high of 11,130. The correction was also heightened on the prospects of the ruling party in a spate of state polls this year and general elections in 2019.
The recent political developments are getting more attention than they deserve from a market perspective, according to Sanger. While he agrees that the market may sell-off more if the outlook for the 2019 election becomes cloudier, he said there is a nothing to fear in the long run.
“To be perfectly honest, I don't think the India growth story —now that the GST is done—is really dependent on whether the BJP gets a commanding majority or [forms] a weak coalition.”
For now, Sanger said investors will await March quarter earnings, while keeping an eye on the global developments to decide their future course of action.
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