Stock market volatility: Indian equities better placed than global peers, says Anil Singhvi - lists out two major factors

Stock market volatility: Amid the growing economy and the strength of retail investors, the Indian markets are registering better performance than its global peers, Zee Business Managing Editor said during a special edition of Editor’s Takes on Monday. 

Despite a gap-down opening, the Indian markets intraday are trading in the green, defying the global weak trend. In comparison, the US markets on Monday closed lower, as Dow Jones closed almost 2 per cent lower and Nasdaq over 4 per cent. 

According to Singhvi, “The growing Indian economy and the cumulative strength of retail investors are aiding the market from decisive fall despite sell-off by global investors.” The foreign investors have been a seller for eight straight months in May and are selling nearly Rs 40,000 crore each month. 

The managing editor believes amid the surge of local liquidity in the markets, be it through direct trading, mutual funds, or any other investments, the Indian equities are in a better position.” 

He believes that due to these two factors the market shall witness a curbed fall, similarly, the Indian markets will outperform all other global peers when the domestic equities witness an upward rally. 

The only deterrent to the Indian economy at present is inflation, says Singhvi, adding further that “we should control the inflation at domestic level, especially food, unlike inflation impacting through imported commodities such as crude oil and metals.” 

If we control the inflation in domestic commodities, India may not require rate hikes, as these hikes won’t control crude and metals movement, he added. 

The benchmark indices – Sensex and Nifty50 – are trading higher at around 12:20 PM. The former is up over 250 points or 0.47 per cent to 54,724.6 levels, while the latter is gaining almost 75 points or 0.46 per cent to the 16376.55-mark on Tuesday.