This market correction is a great opportunity to build a medium and long term portfolio. Hiren Desai, Lead Portfolio Manager of Goldman Sachs Asset Management, has said this. At Moneycontrol's Global Wealth Summit, Desai said many important things about the stock market and investment. Regarding the selling of foreign institutional investors (FIIs) in the Indian market, he said that they (FIIs) have the option to invest all over the world. An Indian investor does not have this freedom.
He said that many things have forced FIIs to sell in India. Growth in India has slowed down. Valuations have been relatively high. On the other hand, other markets like China have become more attractive. This is why the correction in the Indian market started. But, it is important to keep in mind that the supply of paper in India has been very high in the second half of last year. Therefore, the Indian market is excellent in the long term. We believe that we are in a phase in which we are seeing a cyclical slowdown in the Indian market. We do not think that there is any kind of structural problem regarding the Indian market in the medium to long term.
Desai said that today the country's balance sheet and the companies' balance sheets are in a very strong position. Talking about fiscal or current account deficit or inflation, the economy is in a very good position. The companies' balance sheets are also quite healthy. When the companies and the government's balance sheets are good, then there can be no major problem. This fall is only for the correction in valuation, which has been going on for the last several months.
Desai gave the example of legendary investor Warren Buffet. He said that Buffet had said that it only happens in stock markets that when prices fall or valuations go down, people start worrying. The opposite should happen. You should be happy that you can now buy something at a lower price. Therefore, I believe that if you are a long-term investor, then this is a great opportunity for you. This correction in the market has given a great opportunity to build media and long-term portfolios. The reason for this is that there is no doubt about India's growth.
