Markets are looking forward: Nilesh Shah on rally in equity

Banking on the expectation of current account surplus and economic package by the government, the markets are optimistic about the future, which is leading to a rally in equities, according to a top fund manager.

"In some sense, markets are looking forward. At this time markets are discounting that India would be the current account surplus. The economic package announced by the government and the Reserve Bank of India (RBI) will have its effect on the ground. India will also get the increased flow of FPIs," Nilesh Shah, Managing Director of Kotak Asset Management said in DH Sparks webinar, organised by Deccan Herald in association with Mutual Funds Sahi Hai.

Watch the webinar here

With over 400 participants for the event, the other panelists at the event included Anubhav Srivastava, Partner of Infinity Alternatives; Hansi Mehrotra, Founder of Money Hans; and Pratik Oswal, MD&CEO of Motilal Oswal AMC’s Passive Funds Business.

The panel discussion was moderated by Hansi.

"When I look at the index funds, I divide them in two different categories -- international and domestic. International funds have been very popular among all the investors," Oswal, who mostly looks into the index funds at Motilal Oswal said.

Srivastava advised people not to exit the benchmark index stocks at the time when the stock markets crash, and rather take advantage of the situation by the rebalancing of the portfolio.