Nifty Stocks Will Face Volatility, Smaller Firms May Be Spared, Says Canara HSBC OBC Life InsuranceMarch 15, 2021
As rising interest yields and inflation continue to affect global market sentiment, causing volatility, Indian markets may also not escape unscathed, according to Deven Sangoi, chief investment officer at Canara HSBC OBC Life Insurance.
The past 10- to 12-day trends indicate that volatility has been impacting Nifty 50, Sangoi told BloombergQuint’s Niraj Shah in an interview. But mid and small-cap indices seem to have remained largely unaffected, he said.
“Large-cap companies where global cashflows are higher and ETFs and large investors are invested will go through more volatility,” he said. Accordingly, he said, stock-specific volatility cannot be avoided and must be watched out for.
While the market rally has created a lot of scope for volatility, if the interest rate environment were to be considered, Nifty 50 is fairly valued at 15,000 and equity continues to look in a much better place than any other asset class, he said.