Mumbai, Apr 29 (PTI) India is in a reasonably good spot despite global headwinds and retail investors should stay invested for long market volatility notwithstanding, Sebi Chairman Tuhin Kanta Pandey said on Tuesday.
India has shown a lot of resilience ever since the tariff war began to impact markets worldwide, Pandey said in an exclusive interview with PTI.
"I would suggest that...despite the global headwinds, India is in a reasonably good spot," the markets regulator said, highlighting the economic strength of the country.
These include consistent economic growth, low fiscal deficit, reasonable external debt, no twin balance sheets problem and manageable current account deficit, among others, Pandey said, adding that the country is also negotiating various bilateral trade deals.
"No doubt, there are global headwinds, arising from the geoeconomic fragmentation in the past as well as trade actions, especially by the US," he said.
Over the impact of the ongoing volatility on the retail investors, Pandey acknowledged that many such investors have joined the journey recently and have not seen any downturn.
This should act as a "learning curve" for retail investors, Pandey said, advising them to stay invested for the long term.
"If that's the strategy they adopt, they would definitely be in a much better position rather than, you know, getting panic over the short term," the career bureaucrat-turned-regulator, who took over as the Sebi chairperson in March this year, added.
There is also a need for the retail investors to have better awareness and take bets with "proper information", he noted.
Citing the case of the futures and options trades, where the retail investors have taken speculative bets and lost money in over 90 per cent of trades, Pandey said one must not behave like being in a casino.
Sebi's measures on this front have been somewhat effective as the volumes have declined year-on-year, Pandey said, pointing out that the activity is still high if compared to the behaviour two years ago.
When asked about the fatigue among retail investors as seen in some softness in the systematic investment plan flows, Pandey said we must appreciate that investors are making their own choices and diversifying their asset allocations.
Retail investors need to be wise, and well educated, not get attracted to false promises of high returns and never get influenced by unregistered entities acting as "financial influencers", he said.
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