Top 6 Questions with : Nirmal Jain, Chairman and Founder of IIFL Group
Updated on: 28 Jun 2016
Nirmal Jain, chairman and founder of the IIFL Group, spoke to Rajesh Bhayani on the impact of Britain voting to exit the European Union on Indian markets. The process of free trade and globalisation has not ended, he says, and markets will start tracking earnings growth in the medium to long run. Edited excerpts
How long will Brexit haunt Indian markets and how far could they fall in the near term?
I think the impact will be over in a few days, unless there are other disturbing developments like more countries leaving the EU or some funds or financial institutions going bust due to currency or market volatility. Fears about Brexit are exaggerated. At this point, it does not appear to be a Lehman Brothers kind of crisis, which had a domino effect on the financial system.
For Indian markets, watch global developments in the wake of Brexit, along with the monsoon, inflation, economic growth, industrial production and reforms. In the near term, the market will remain range-bound and will follow fundamentals and corporate earnings in the long term.
The general perception is that Brexit will slow down the EU as well as global economies. How can Indian companies grow in that scenario?