Arindam Mandal, Head of Global Equities in Marcelous Says that the impact of AI on jobs can create difficulties for employment and economic development in the longitarms. If the GST cut is implemented, then there may be a rapid increase in economic growth. However, he believes that the biggest long -term challenge for growth is employment.
An interview given to Moneycontrol “To convert the fast in demand into continuous development, we have to provide employment on a large scale. However, AI is bringing changes in the pattern of recruitment in some sectors,” he said.
He further said that foreign investment in the country has a direct connection with the US real yield, dollar status and earnings. He said, “If the American bond yield is low and India’s earnings remain stable, then Fiis can again turn to our markets despite India-US trade issues, despite unresolved issues.”
Arindam Mandal feels that there may be softness in the attitude of the Monetary Committee in America. But all this will depend on the figures. The next two meetings may have another cut of 25 basis points. If the inflation of core services continues and there is further softness in the labor market, then another cut is also possible. But if there is a decrease in inflation and there is stability in growth, then rate cuts may stop.
If the US-India tariff issue is resolved, can a new record high in the market be seen? In response, Arindam Mandal said that if this happens, the biggest obstacle for the market will be overcome and the risk premium will be reduced. Export oriented shares related to auto, chemical, textile and renewable energy will be the most benefit from the solution of tariff issue. The cutting of tariffs alone alone will not be sufficient to reaches the market and reach its new heights. This will also require support from growth and global interest rates in the earnings.
Do you think that even if there is no solution to the Indo-US trade problem, foreign institutional investors will soon return to India? In response, Arindam Mandal said that yes they can still return. Foreign investment in the country has a direct connection with the US real yield, dollar status and earnings. He said, “If the American bond yield is low and India’s earnings remain stable, then Fiis can again turn to our markets despite India-US trade issues, despite unresolved issues.” India’s long term outlook is quite good. But the recession in expensive valuation and earnings has been a matter of concern. If any one of these improves, then we can see the return of foreign investors.
India’s Large-CAP valuation premium is now close to its historical premium, compared to other emerging markets so far this year, compared to emerging markets.
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