Expert views on markets: Ashok Jain, chairman of Arihant Capital Markets, says smart investors can take advantage of current volatility as it provides an opportunity to find good businesses against reasonable valuations. In an interview with Mint, Jain shared his views on the global economic slowdown and its impact on the Indian stock market and whether the US Federal Reserve can do an aggressive rate cut. Here are the edited excerpts from the interview: How to navigate the volatility of the market? When do you expect the market to stabilize? It is important for investors to stay focused on their long -term goals, especially during volatile times. I have always emphasized the importance of being calm and not to succumb to impulsive decisions if markets are volatile. And one must absolutely refrain from taking leverage in such markets. For smart investors, current volatility offers an opportunity to find good businesses against reasonable valuations. It is very important for your investment success to investigate the business thoroughly before investing. Plus, if the company has strong fundamentals and good management, while the volatility can affect its share price, you know that it will weather the storm and reward investors in the long run. What the market will stabilize is really hard to predict for someone. However, as the India VIX cools down, we believe that the market will stabilize gradually. How can the global economic slowdown affect the Indian stock market? We are very positive about the Indian economy and were clumsy about India’s long -term growth story. It is well established that India’s correlation with global GDP growth is extremely low, as the growth story is driven by the country’s domestic consumption and growing middle-class wealth. India’s large and growing domestic market offers a buffer against global economic fluctuations, making the country resilient to the global economic slowdown. Indian stocks were less volatile compared to their Asian counterparts in the recent correction. In addition, the increasing participation of domestic institutions will also help Indian capital markets to resist any major global impact. Domestic investors have dumped more than £ 25,000 crore through Systematic Investment Plan (SIP) each month, even during the recent market. In the short term there may be bumps, but I believe that the economy of India will stand, even in the global economy, even in the midst of uncertainty or slowdown. It is also important to note that India’s exposure to potential US rates is minimal, as exports of manufactured goods to the US constitute only about 2% of India’s GDP. As a result, the overall economic impact of such trade measures is expected to be limited. That said, I believe that this global economic slowdown looks temporary and can take a few months. However, this will strengthen the US economy in the long run and have to exceed the global markets. Some of the deficits that the American faces now have to relax or relieve. This is an opportunity for India because the overall market debt or trade deficit with the US is relatively low. Should we get on track with the risk of a recession? How will this affect the Indian markets? It is too early to call it a recession, although there are economic slowdown risks. Inflation in the US has cooled down and opened the door for possible rate cuts by the Federal Reserve. If the Fed takes an aggressive rate -cut, it can increase global liquidity and benefit the emerging markets such as India. In the interior we have already seen two consecutive rate cuts by the RBI, along with generous liquidity support, which can continue as world conditions remain supportive. What are your prospects for the Indian economy? The Indian economy is now looking strong. Rural consumption is strong, our banking NPAs are low, the total corporate debt is also lower, our current account deficit is also at historic lows – which fundamentally places the country in a strong position. In addition, the recent drop in oil prices will also help India. We are positive about the Indian economy. Given the recent market correction, it could be an opportunity for investors who missed higher levels to build their portfolios. There is a great likelihood that India as a winner in this uncertain scenario of trade wars will come out. What domestic themes would you recommend playing? Given India’s strong economic fundamentals and structural growth drivers, several domestic themes look promising. Infrastructure is still an important focal point, supported by the government’s expenses to roads, railways and urban development. Manufacturing, especially under the PLI scheme, offers long-term potential. Bank and financial services remain attractive due to improving credit growth and asset quality. Rural and urban consumption is another theme supported by rising income and favorable demographics. In addition, sectors such as renewable energy and digitization get traction. Investors can consider these themes for long -term portfolio building that correspond to the growth of India. At Arihant, we created inventory baskets, by hand chosen after thorough research for investors to get exposure to these sectors for the creation of long -term wealth. Read all market -related news here read more stories by Nishant Kumar Disclaimer: This story is for educational purposes only. The views and recommendations above are those of the expert, not coin. We advise investors to check with certified experts before making investment decisions, as market conditions can change quickly, and conditions can vary. First published: 22 Apr 2025, 12:23 pm Ist
Global economic slowdown can be temporary; Current volatility an opportunity, says Arihant Capital Chairman | Einsmark news
