I have two questions. First, with the lockdown now being eased and unlock 1.0 being announced, how do you see the markets reacting? Second, as you always say that one should make staggered investments, do you still feel that one should continue making only staggered investments? What are the risks now?
To honestly answer your first question on how the markets behave, I feel the fact is that my feelings don't matter here. Actually more than that, the truth is that I don't know because I wasn't even expecting the market to rise or make a comeback so dramatically as it did in the last four-five weeks.
A number of factors drive the short-term direction of the market. The liquidity of the market itself is the biggest driver. As we have seen, domestic investors have been continually investing their money despite the grim outlook of the economy and the earnings of companies that we invest in.
So, the equity markets have been far more revealing if we look at the declines in the markets. I find that even after the big declines and the resurgence, we are just about 12-15 per cent down. And this unpredictability is the reason that you should spread your investments.