Amid the current global climate of high interest rates coupled with inflation, Ambareesh Baliga sees a short- to medium-term hit. However, he is optimistic about India’s growth story, Baliga said on the sidelines of BQ Prime Future Today Summit.
“India is much better placed than the rest of the world, and if we utilise this (period) well, the next 10 years could be the best for India till date,” the market expert said.
While there may be a correction soon, rather than a crash, investors need to be cautious, said Baliga.
In the short term, he expects exports—both manufacturing and services—to take a hit as discretionary purchases are forecasted to be lower for the next four-six quarters. However, after a period of six months, Baliga is bullish on sectors like speciality chemicals, engineering exports and defence.
Though valuations have gotten expensive and some FIIs may keep selling, Baliga expects domestic liquidity to be a support.