The market does not care about politics, said Madhav Dhar, managing partner, GTI Capital Group, adding that elections in India have always been overestimated in terms of their impact on the market.
When asked about what would be the bigger risk for the market - global slowdown or elections, Dhar said the market was not at risk due to elections. However, he said uncertainty is worse than bad news which could impact the market.
“If you think a change in politics is going to lead to a material change in policy — labour policy or privatisation or something fundamental — I don’t think the market really cares about politics,” he said.
Liquidity is starting to ease both globally and in India, said Dhar. "Historically, when liquidity and growth collide, liquidity has won ... so, my best guess is we have passed the point of tight liquidity around the world and in India as well now. That is supportive of where we are today in the Indian cycle."
The house is not negative on the auto space and is of the view that the slowdown seen in the sector could be a 1-2 quarter blip, he added.
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