The Hindu Business Line : Fund managers remain positive despite markets’ huge fall

Mumbai, Aug.16 Thursday saw yet another huge fall in the in the Indian stock markets but fund managers continue to harp on ‘fundamentals of the Indian economy’ theme.

“Markets are behaving in such a manner because of global trends and the impact of US housing where the bubble has burst and now there is a lot of deflating happening and there is unwinding of the risks people had taken, fundamentals still remain intact”, said Mr Mugunthan Siva, CIO, Optimix, a mutual fund that specialises in investing in other mutual funds.

“One good thing is that the fundamental is not changing, because Indian economy is driven by factors like domestic consumption, infrastructure and capex cycles and so the global pressures do not really affect domestic spending and expenditures and the corporate fundamentals by and large remain intact”, says Mr Nikunj Doshi, Vice President, Kotak Equity funds.

But Mr A. Balasubramaniam, Investment Officer, Birla Sun Life AMC Ltd is worried that ‘the demand for investment is less than its supply as there is selling pressure in the market’. In his view that could be a ‘problem’.

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Fund managers remain positive despite markets’ huge fall