Mangaluru: ENQUBE Collaborations along with EquiPPP Capital and AJCONGLOBAL Services held a webinar on ‘Dynamics and Resilience of Indian Financial Markets’ on Saturday November 27.
“With Liquidity push by RBI and Central Banks, steep Interest Rate reductions, fiscal stimulus and the reforms brought in during the pandemic has shown visible signs of recovery of the Indian Economy,” conveyed M. Narendra, moderator of the webinar.
The potential risk of the new variant of Covid virus will again bring in changes in the global Market and economy.
Neeraj Gambhir observed that the pandemic has brought in digital renaissance. Addressing the issue of low interest rates, he said “there wil be normalising of monetary policy by Central Banks for next 12-18 months. If we look at Fed forecasts currently, broadly the consensus says by the middle of next calendar year we’ll see deferring to finish and the revival of economy will start.”
He also stressed that the large investors are not interested in secondary market and focus only on primary market.
“There is ample liquidity in the market, not only domestic, but also globally. But when we look at growth factors, income distribution or per capita income, those parameters are not so comfortable,” said Iswar Pradhan. “Indian economy is in a cusp of a revival cycle”, he added.
When asked about integration of global markets, Samir Sawhney, responded “As a reactionary measure to keep the global economy and Indian economy on track, major Central Banks have cut their rate and pushed ample liquidity in the market so that the growth prospects are kept alive as well as growth comes up and economy picks up again,” he said. He added that during the pandemic, money has moved from money market to capital and bonds market and this movement of money makes the market integrated.
“Inflation is becoming a problem. Some of the excess money is sloshing around the system, which at some point of time will start going out,” said Pradeep Khanna. In his address, he mentioned that the Federal Bank took the path of assets purchase and said that it underpinned the equity prices of many entities.
Ananth Narayan pointed out that the US is currently having a $6 trillion fiscal deficit. In India, the money supply has increased but we find no significant growth in the GDP. He said, the accumulation of money in the hands of certain people has led to it. The have nots are not being benefitted by it.
Talking about Crypto currency he said, “People like it for both right and wrong reason. The wrong reason being to invade taxes and right to prevent paying extra charges on transaction where not required.”
Shibani Sircar Kurien, while addressing the panel about the equity market said “Do not time the market, give time to the market.” She reiterated the point that one investing in the equity market must partner with a longtime horizon. And that one should always research before investing. She echoed her belief in the revival of capex cycle.
Ankit Ajmera commented on the market retail investments reaching high. “India has investors class that is not educated about investments and IPOs. Investment should always be backed by education and knowledge about the market,” he added.
Commenting on the Foreign Exchange market, Sravan Kumar said, “RBI has removed practically all restrictions, thereby simplifying work for hedging.”
In his closing statement, Neeraj Gambhir said “Just like in the history when the pandemic hit, Europe underwent Renaissance. Likewise, now we are having ‘digital renaissance,’” he said.
The Inaugral address was given by G. Mahalingam, Former Whole Time Member, SEBI. M. Narendra, Former CMD IOB, Advisor, Enqube Collaborations and Pritish Kandoi, Executive Vice President, ICICI Securities were the moderators of the webinar.