According to The Economic Times, Deepak Shenoy emphasizes that the current market environment requires significant patience from investors. As reported by The Economic Times, Shenoy states that 'This market requires patience. If you do not have that patience, a fixed deposit or a liquid fund will probably be a better option.' He advises investors to maintain a five-year outlook to navigate the current volatile market conditions effectively. The market expert notes that disciplined investing is key for retail investors and that the current macroeconomic turbulence is beyond anyone's control, but India's earnings story remains quietly strong despite global challenges.
Despite global economic turbulence including oil spiking, bond yields surging globally, and the rupee under pressure, India's company earnings are performing well, as reported by The Economic Times. Shenoy notes that 'India's earnings story remains quietly strong' and that 'India needs to build domestic manufacturing to reduce dollar dependency.' This performance contrasts with the challenging macroeconomic conditions affecting global markets, with the market presenting entry points for those with a five-year outlook. The earnings strength provides a fundamental basis for long-term investment despite current global headwinds.
According to The Economic Times, Shenoy identifies policy consistency as a critical issue affecting investor confidence. He argues that frequent flip-flops, from Mauritius tax changes to retrospective capital gains levies, have made foreign investors wary of committing to India's bond market for the long haul. As reported by The Economic Times, Shenoy suggests that 'If we had a 10-year trajectory and kept it, that would help.' The policy inconsistency creates uncertainty that deters both domestic and foreign investors from making long-term commitments to Indian markets.
As reported by The Economic Times, the bigger issue is policy consistency affecting the bond market. Shenoy explains that any relief measure needs to be accompanied by a credible long-term policy commitment to have a meaningful impact on FII flows. This policy stability is essential for attracting sustained foreign investment in India's bond market. The lack of consistent policy framework continues to create barriers for foreign institutional investors seeking to commit to India's debt markets over the long term.
