Nivesh Ka Funda: Amid global volatility know how investors should approach stock markets

The domestic markets have been volatile since the beginning of this year. The markets have been down before the Union Budget 2022. However, the Union Budget 2022 did boost the markets to a certain extent. Now, the Ukraine Russia conflict and talks regarding the tightening of Fed and other central banks are impacting the domestic markets.

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Prateek Pant, Chief Business Officer, White Oak Capital Group spoke about the volatile situations and what should be the approach of the investors during this time, in a segment of Zee Business' 'Nivesh Ka Fund'.

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Pant said, "The markets have been giving good returns for the past couple of years. The different segments rallied in the markets. There are times when there is a pause and the market itself analyse the direction of flow for better returns."

He also pointed out that the macro event systems are driving the markets. "The prices of oil is now $100 and also there are challenges across the world due to the geo-political issues," he added.

In this context, Pant suggested that at this time the investors must pause and take a look. Also there are certain investors who were not able to participate in the markets. "I feel that better opportunities are awaited in the coming months for one to re-enter into the markets," Pant advised.

While speaking about approach of the investors during volatile events like the Ukraine Russia conflict, Pant said, "India's fundamentals are at its strongest point if we consider the last decade. The interest cycles have positively impacted the corporate earnings. Also, we have witnessed double digit returns from corporate earnings after quite some time."
"At this time, the profitability of the companies have to be considered. It is true that the commodity prices are high and the margins are also impacted but over a period of time the balance sheets have become strong," he added.

Pant also emphasised on the fact that there have been certain changes in the banking sector. "So, if you are coming to equity markets, you should have a view for three to five years. Going by that, one is going to get various good opportunities in the coming months to enter the markets," he said.  

Furthermore, if an investor starts allocating with every dip, be it SIPs or STPs, then there will be the opportunity to make one's portfolio once again.

(Disclaimer: The views/suggestions/advices expressed here in this article is solely by investment experts. Zee Business suggests its readers to consult with their investment advisers before making any financial decision.)