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http://m.economictimes.com/markets/...esome-shankar-sharma/articleshow/52790626.cms
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Looks like UK is going to exit EU, expect July to be troublesome: Shankar Sharma
By ECONOMICTIMES.COM | 17 Jun, 2016, 10:33 hrs IST
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Expect July to be troublesome: Shankar Sharma
Even as stock markets the world over on Friday appeared to be pricing in lesser possibility of a 'Yes' vote in the Brexit referendum next week, Dalal Street veteran Shankar Sharma gave the market jitters, by saying that the UK appeared to be heading for an exit from the EU bloc.
"It looks like the UK will exit European Union," Sharma said in an exclusive interview with ET Now.
Thursday's assassination of a British MP led to a suspension of the campaign for Britain's EU referendum, giving equity markets the world over hope that it would reduce the chances of a Brexit.
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"Should this materialise, it will lead to troublesome times in the market in July and many domestic largecaps will lag emerging markets," Sharma said.
The United Kingdom will hold the referendum on June 23 to decide whether Britain should exit the EU or stay with it.
Sharma, however, said the Brexit threat is not that big a challenge for long-term investors. "If global financial markets are affected by Brexit, the Indian market will not remain insulated. However, if an investor is looking to invest in the market for long term, say more than 12 months, then any dip caused by such an event should be used as a buying opportunity," he said.
Brexit can cause kneejerk reaction in the domestic market, as any decision by the UK to exit the EU can lead to a selloff in emerging markets, which India is part of.
The Indian market is staring at many uncertainties. But as an economy, India stands apart and that is more important, other experts said.
"We have seen it all. This picture keeps rolling. Today it is Brexit, one year back it was oil prices and another one year back, it was European Union disintegrating," Madhusudan Kela, Chief Investment Strategist, Reliance Capital, said in an interview with ET Now earlier.
"India has a story of its own. We have to recognise that this is a country which is still offering 7-8 per cent growth. I only know there are a lot of businesses and a number of companies, which will make a lot of wealth," he said.
Kela said if the market falls by 5 per cent or 10 per cent, that will be an opportunity to grab, because when people panic and they want to throw away things, you have to be brave and have a conviction in the longer-term story of India and buy.
INSTALL APP
News
Looks like UK is going to exit EU, expect July to be troublesome: Shankar Sharma
By ECONOMICTIMES.COM | 17 Jun, 2016, 10:33 hrs IST
gplus
message
aPlus
Expect July to be troublesome: Shankar Sharma
Even as stock markets the world over on Friday appeared to be pricing in lesser possibility of a 'Yes' vote in the Brexit referendum next week, Dalal Street veteran Shankar Sharma gave the market jitters, by saying that the UK appeared to be heading for an exit from the EU bloc.
"It looks like the UK will exit European Union," Sharma said in an exclusive interview with ET Now.
Thursday's assassination of a British MP led to a suspension of the campaign for Britain's EU referendum, giving equity markets the world over hope that it would reduce the chances of a Brexit.
Track your 3G usage & save money
Ad Smartapp
"Should this materialise, it will lead to troublesome times in the market in July and many domestic largecaps will lag emerging markets," Sharma said.
The United Kingdom will hold the referendum on June 23 to decide whether Britain should exit the EU or stay with it.
Sharma, however, said the Brexit threat is not that big a challenge for long-term investors. "If global financial markets are affected by Brexit, the Indian market will not remain insulated. However, if an investor is looking to invest in the market for long term, say more than 12 months, then any dip caused by such an event should be used as a buying opportunity," he said.
Brexit can cause kneejerk reaction in the domestic market, as any decision by the UK to exit the EU can lead to a selloff in emerging markets, which India is part of.
The Indian market is staring at many uncertainties. But as an economy, India stands apart and that is more important, other experts said.
"We have seen it all. This picture keeps rolling. Today it is Brexit, one year back it was oil prices and another one year back, it was European Union disintegrating," Madhusudan Kela, Chief Investment Strategist, Reliance Capital, said in an interview with ET Now earlier.
"India has a story of its own. We have to recognise that this is a country which is still offering 7-8 per cent growth. I only know there are a lot of businesses and a number of companies, which will make a lot of wealth," he said.
Kela said if the market falls by 5 per cent or 10 per cent, that will be an opportunity to grab, because when people panic and they want to throw away things, you have to be brave and have a conviction in the longer-term story of India and buy.
