India seen as most favoured market to invest in: Marcellus Investment’s Pramod Gubbi
The Indian market stands out in the global situation both from the perspective of capital flows and foreign investments due to strong macro fundaments, said Pramod Gubbi, co-founder of Marcellus Investment.
“India is being seen as the most favored market and economy to invest in,” he said in an interview with CNBC-TV18.
While Gubbi believes that valuations of Indian companies are still not ‘comfortable’, India is still considered a more stable economy to invest in a long-term perspective, irrespective of valuations.
On November 24, the Sensex reached 62,412 to a new all-time high for itself. It took over 13 months for the Sensex to breach the previous record high of 62,245 it achieved on October 19, 2021.
Moreover, it took the benchmark index just more than five months to reverse all the losses it incurred from its earlier peak and touched the yearly low of 50,921 on June 17, 2022.
Also read: Check out the leaders and laggards behind India’s jaw-dropping market performance
He also mentioned that an expected spike in commodity prices may hurt sentiment for the Indian economy. Gubbi expects commodity prices to rise ahead of China opening up trade which will create demand pressure, added to the ongoing geopolitical turmoil due to the Russia-Ukraine war.
“However, commodity price inflation is a bigger risk to the India story,” he said.
This will further impact the country’s current account deficit and fiscal deficit, which remain a concern for the economy as they are the main parameters impacted by commodity price movement, Gubbi explained.