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Indian companies may see an opportunity if sourcing shifts from China to India, says Kotak Mahindra AMC

Coronavirus has some beneficial impact on the Indian economy in the form of lower oil prices, said Nilesh Shah, MD of Kotak Mahindra Asset Management.

By Anuj Singhal | Latha Venkatesh | Sonia Shenoy Feb 14, 2020 2:13:38 PM IST (Published)

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There is a supply chain disruption emerging in Indian companies albeit on a much smaller level compared to global level but consumer durables, pharmaceuticals are the sectors which could be impacted because of supply chain disruption from China, said Nilesh Shah, MD of Kotak Mahindra Asset Management while sharing his views and outlook on market.

“The real issue for us is far more global than local. There is a lot of concern on coronavirus scare. The Chinese economy is going through a troubled time, their power production is down about 20 percent...probably quarterly GDP could be down about 10 percent,” he added.

“Coronavirus has some beneficial impact on the Indian economy in the form of lower oil prices. There are sectors like textiles, chemicals where one could see opportunity emerging as sourcing changes from China to India and other countries. This is truly a place where optimistics will have enough reasons to buy, pessimistics will have enough reasons to sell and most likely market will swing between bout of optimism and bout of pessimism,” said Shah.

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