‘Indian stock market will not survive..’: Zerodha founder

“People keep asking my views about the markets. I’ve been doing this for ~25 years and have no clue. I generally say that whatever the current trend continues, it is most likely. But over the past year, I have been consistent that India has the potential to outperform,” Kamat said in a series of tweets.

By performing better, Kamat made it clear that he didn’t mean Indian stock market Will go up, but probably won’t fall as much as others and will probably outperform the upside. This is because of the negligible leverage in the Indian stock markets and all the people waiting to invest in India.

“Almost every time there is a gap in the market, we have seen more investors enter; Historically, it was the opposite. I think it means huge buying interest. Even on the institutional side, local and foreign, private and public, there is a lot of interest in India compared to others,” Kamat said.

However, he believes that the Indian markets will not be able to escape it if the US bear market continues. “In an interconnected world like the one we live in, if the US bear market continues, there is no way we will survive. We are most likely to eventually follow the trend. But I think We will continue to outperform on the downside and be less volatile.”

US stocks have had a rough few days as traders digested comments from Fed Chair Jerome Powell, who reiterated that the central bank is prepared to continue monetary tightening even at the risk of an economic slowdown.

zerodha The CEO’s neutral to slightly bearish outlook on the broking industry is due to what has been happening in the US over the past year as he believes that to perform well, the industry needs a bull as bears /neutral is not enough.

“I think the trade for the past year, which continues for the above reasons, has been Long India, Short US and other emerging markets,” he said.

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