Amid US-China trade war, Sundaram Mutual Fund's CEO Sunil Subramaniam has this advice for retail investors

Sunil Subramaniam said that people are scared because of the pull out of FIIs, thinking there is something about to that these Foreign institutional investors are aware of but we are not. 

Amid US-China trade war, Sundaram Mutual Fund's CEO Sunil Subramaniam has this advice for retail investors
Sunil Subramaniam said "This is not India specific, as the market is witnessing correction, and elections have nothing to do with it." Image source: Zee Business
Written By: ZeeBiz WebTeam
Updated: Tue, May 14, 2019
08:30 pm
New Delhi, ZeeBiz WebDesk
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The escalating trade war between the United States and China is causing market volatility across the world, and the impact is also being witnessed in India's domestic stock markets, where Foreign institutional investors (FIIs) are on a selling spree. Along with it, the market is also jittery over 2019 general elections, and investors are facing the dilemma of waiting till poll results or go ahead with investments. Amid this scenario, Zee Business' Managing Editor Anil Singhvi sought the opinion of Sunil Subramaniam, CEO of Sundaram Mutual Fund. 

He was asked if it was the right time to buy for retail investors, Sunil Subramaniam said that retail investors should continue with what they have been doing so far because election results will come in 10 days. Therefore, they need not worry and change their strategy, rather they should continue according to their asset allocation. 

Sunil Subramaniam said that people are scared because of the pull out of FIIs, thinking there is something about to that these Foreign institutional investors are aware of but we are not. This action on part of FIIs is not India specific, but they rather took out their investments from the entire money market, he added.

According to Subramaniam, this is happening due to the ongoing global trade war between the US and China, and in this risk of scenario, money is being taken out of emerging markets to the US, affecting countries like India.

This is not India specific, as the market is witnessing correction, and elections have nothing to do with it, he said, adding that "in my opinion, domestic retail investors should continue according to their asset allocation."

Notably, Indian stock market today bounced back after nine sessions of losses, and reclaimed some lost ground, The BSE Sensex rose about 228 points and the NSE Nifty closed nearly 74 points higher. In the last nine sessions, the Sensex had lost 1,940.73 points and the Nifty has given away nearly 600 points.

Indian rupee also staged a mild recovery today, gaining 7 paise to close at 70.44 against the US dollar.

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