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    Surgical strikes: International buyers not going to bail us out this time: Ajay Srivastava, Dimensions Consulting

    Synopsis

    “My advice to customers will be today irrespective of whatever your positions are, wait it out, no point getting out as fast unless you are leveraged”

    ET Now
     In a chat with ET Now, Ajay Srivastava, CEO, Dimensions Consulting, says we do not know the scale of it. We do not know what Pakistan’s response is going to be but quite obviously it is a game changer as far as the market is concerned. Edited excerpts


    ET Now: How are you reading the market move right now and the geopolitical situation which is evolving by the minute?

    Ajay Srivastava:
    This is not a surprise. On Monday, we had issued a note to our customers that the government is kind of getting into a corner to do some action of this kind and we had lightened up the positions. So it is not unexpected. If you see the jingoism going on in the channels in India, this was a kind of forced response. I do not think so there was anything unexpected. It is just the timing of it when it would have happened; that is one.

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    Number two, the response is very clear. It is going to affect the markets now. That is what it is going to be and it is going to unnerve at least the foreign investors. It has unnerved the domestic investors. We are getting calls saying cut out our positions, let us get out of the market. I think there will be a knee-jerk reaction to some extent.

    We do not know the scale of it. We do not know what Pakistan’s response is going to be but quite obviously it is a game changer as far as the market is concerned. People who have the leverage to buy into this market, there is more trouble for them. People who can ride through this, perhaps will do it but the bottom line is you got trouble times ahead. International investors are not going to be bailing us out this time. You will also see at the same time equity prices going down, the yields are also going up as we see on the debt market. So it is a double whammy.

    The government was in a corner but it is unfortunate that it has happened and we have to live with it now.

    ET Now: We are looking at the volatility index, 29% that is not knocking at-- in fact now we are at 18 on the India VIX?

    Ajay Srivastava:
    The point was that it is coming from a platform of a very placid time. The volatility index has not really moved in the last couple of months. So, of course this will have a factor today because it has come from a background of almost no volatility and the index being absolutely placid. That is not a surprise. The key decision people are going to take today is very clear. They believe that this market can ride through this trough.

     India has fulfilled its purpose, the PR exercise is over and can now go back to talking because the pressure was huge on the Indian government.My advice to customers will be today irrespective of whatever your positions are, wait it out, no point getting out as fast unless you are leveraged and see what happens because my guess is that both sides will walk back from the brink, not escalate this further. India has fulfilled its purpose, the PR exercise is over and can now go back to talking because the pressure was huge on the Indian government.



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    (What's moving Sensex and Nifty Track latest market news, stock tips and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .)

    Download The Economic Times News App to get Daily Market Updates & Live Business News.

    Subscribe to The Economic Times Prime and read the Economic Times ePaper Online.and Sensex Today.

    Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price

    ...more
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