Global financial fluctuations have been rampant in last 3 years. There have been myriad of ripple effects on the market owing to the Euro Crisis and oil price fluctuations along with political instability in India and other parts of the world. All these had led to a distortion in the working of the financial market but the matters have been mellowing down and there is a sense of stability prevailing. So in the next 6 months there should be a considerably favorable change in the market which should continue to improve with time. Amit Rathi, Managing Director of Anand Rathi Brokerage is of the opinion that those who will invest with a long term view point could benefit well.
Amit Rathi says that even though year 2016 hasn’t had one of the smoothest start offs, yet it isn’t as terrible as other years have been. The market is down by 20% whereas it could have been as low as 40-50%. The only way to hedge oneself from this fall is by investing from a long term view point. This would mitigate the negative impacts of the next 6 months, which could be a little tricky.
He also highlights that India is a dual track economy. While we would have sectors which might be heavily impacted by the present market scenario, there are those which would be able to reel out from the subjugation. People should invest in such areas as they would yield good profits once the conditions stabilize.
While midcaps have taken a beating, yet one must not become a pessimist. If looked closely, it would become clear that there have been many companies that have stayed immune to undulations and have rather stayed there ground.
“One has to first focus more on sectors rather than marketcaps but generally speaking we are seeing better growth rates in the midcap and smallcap space. So that is what is leading to conviction that in the next two-three years that sector will continue to outperform.” said Amit Rathi.