What’s your take on the recent Hindenburg report? Could it potentially disrupt market sentiment if the situation worsens?
Bathini believes that while such allegations and rumors might cause short-term market fluctuations, they are unlikely to derail India’s long-term growth trajectory or the ongoing bull run in the Indian stock market.
How do you view the current market conditions? Which sectors are you favoring?
The Indian stock market has shown resilience and recovery despite recent geopolitical tensions. It has managed to absorb selling pressure thanks to robust domestic liquidity and positive trading sentiment. The corporate results for the June 2024 quarter have also been favorable, reinforcing a positive earnings outlook. Bathini is particularly bullish on private sector banks, healthcare, and consumer staples, though he advises caution regarding the shipping and chemical sectors in the medium term.
What risks could make investors wary of Indian stocks?
Bathini notes that the equity investment culture in India is evolving, with many young investors—particularly from Generation Z—seeking long-term gains and remaining optimistic about the Indian economy’s growth. Domestic institutional investors (DIIs) are also well-capitalized. However, any global economic slowdown, a potential US recession, or geopolitical instability could lead these investors to become more cautious about stock investments.
