Akash Prakash: A test of conviction

Discussion in 'Must-Read Interviews, Articles & News Items' started by Vidhi Khanna, Apr 25, 2015.

  1. Vidhi Khanna

    Vidhi Khanna Active Member Staff Member

    Mar 19, 2015
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    I think over the coming few months, India bulls are going to have their conviction severely tested. Markets are likely to go down, correct and stay subdued for some time. At every market decline, holders of Indian equities will be forced to re-examine why they are invested in the country and what the case for the investment was.

    If we look at the bull case for India as outlined just 12 months back, there are clear cracks in the thesis.


    Thus, India seems poised to go through a period of consolidation, with markets at best staying put - but more likely continuing to correct. This corrective phase, to my mind, will be a buying opportunity, but your conviction will get tested. With the markets underperforming, earnings disappointing and perceptions on reform weakening, one will need to keep an eye on the long term and the big picture.