Don't judge MFs by cash levels: Ved Prakash

Ved Prakash Chaturvedi, Managing Director, Tata Mutual Fund talks to Swarup Chakraborty on the current market scenario, the road ahead for the next quarter and factors that are likely to impact the stock markets among various other things.

How do you see the present correction in equity markets?

Some of the issues that the world faced recently like the liquidity issue, non-availability of credit and low investor confidence are real issues and these issues will gradually recede. Sometimes markets expect the recovery to be dramatic and therefore in the last six months we saw that the rise in valuations and prices was steep and very sharp. So after a period of high returns and euphoria there is some correction which is less than 10 per cent and it was expected, as markets do not move in a straight line.

Even the Q3 numbers were not bad, yet the Sensex went down by nearly 1000 points in January. Why?

Markets do not react to an individual event. Markets had anticipated an improvement in the Q3 numbers and it was factored in. The rollback that you see in our markets is also a reflection of what had happened worldwide. This linkage of what happens globally will continue to affect our markets, therefore we have to moderate our expectations from our markets based on what is happening worldwide.

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