“With the Nifty at around 22,750, following a 14 percent drop this year, a lot of the pain has already been priced in, so I don’t see much further downside,” Sonam Srivastava, founder and CEO of Wright Research, told Moneycontrol in an interview.
However, she added that oil prices need to cool off before a sustained uptrend can begin.
Srivastava said earnings growth would be crucial for foreign institutional investors (FIIs) to return to Indian equities. “The key thing to remember is that FIIs have returned to India in the past only when our earnings growth outpaced that of other emerging markets. Actual earnings delivery over the next two quarters will make the difference,” she said.
Do you see a strong possibility of a reversal in the global AI trade sooner rather than later?
I don’t see a full reversal coming just yet, but the global AI trade is definitely in a more fragile spot now. It’s quite something: the top 20 AI and semiconductor stocks lost over a trillion dollars in just one week, and interestingly, it was financing worries that set it off, not a drop in demand.