Never miss a great news story!
Get instant notifications from Economic Times
AllowNot now


You can switch off notifications anytime using browser settings.
10,919.10-97.9
Stock Analysis, IPO, Mutual Funds, Bonds & More

Urgent need to restore confidence among businesses, investors: Navneet Munot

Munot pointed that amid the current environment, one shouldn’t ignore structural strength factors.

, Reuters|
Aug 13, 2019, 08.53 PM IST
0Comments
BCCL
Navneet Munot
Mumbai: There is an urgent need to restore confidence among the business and investor community, said Navneet Munot, CIO – SBI Funds Management.

The business sentiment has taken a beating following GDP growth hitting multi-quarter lows and various high frequency data points hinting at a slowdown and loss of confidence.

“The animal spirits (for both lenders and borrowers) must revive, and that can only happen by two set of forces; buoyancy in the global growth or by stability and predictability in fiscal policy environment,” Munot urged.

Munot pointed that amid the current environment, one shouldn’t ignore structural strength factors.

The government, with significant political capital, can leverage on the bold policy actions taken during the last regime.

“Moderating global growth aside, global situation favors India.
Global investors are in hunt for markets with macro and political stability and prospects for economic growth,” he said.

While revisiting the recent policy moves, concerted efforts are needed to attract foreign savings. The efforts of financial inclusion, financialisation of savings and access to credit were key positives in the last couple of years.
Policy actions should not allow strength of those factors to be eroded, and Indian backdrop is such that low penetration and rising aspirations of the youth bodes well for structural consumption story, said Munot.

He believes that the government, in the present environment, should focus on those infrastructure segments, which are shovel ready, can create jobs and have a multiplier effect on growth.

Indian businesses had seen capacity utilisation improve and were also balance-sheet ready to undertake capital formation, he said.

“Ironing out the cyclical challenges can catalyse the investment cycle pick-up in India. We are hopeful of conducive policy actions to leverage on inherent structural strengths of Indian economy,” said Munot.

“Dark clouds are always followed by a shining sun. This time will not be any different,” he added.
0Comments

Also Read

Early resolution to the NBFC crisis is critical: Navneet Munot of SBI MF

Time to consider triple bottom line of people, planet & profits: Navneet Munot, SBI MF

SBI MF's Navneet Munot on why it makes sense to invest in multicap funds now

Is it time to bottom fish in mid, smallcaps? Find out what Navneet Munot of SBI MF says

Comments
Add Your Comments
Commenting feature is disabled in your country/region.
Download The Economic Times News App for Quarterly Results, Latest News in ITR, Business, Share Market, Live Sensex News & More.

Other useful Links


Follow us on


Download et app


Copyright © 2019 Bennett, Coleman & Co. Ltd. All rights reserved. For reprint rights: Times Syndication Service