Analysts counsel caution for investors

4 min read 02 Jan 2009, 04:50 PM IST

Sanat Vallikappen and Ashwin Ramarathinam

Analysts counsel caution for investors

Mumbai: On 22 December, Michael J. Enabler, chief investment officer at Franklin Templeton Investments’ Mutual Series, wrote in a note: “We are seeing some of the best companies in the world trading at prices that we thought we could never get to see as value investors."

Also See Taking a beating (PDF )

All but two of 12 sectoral indices on BSE have lost at least 50% in value as they took a relentless beating from the global financial crisis and economic slowdown, with the 30-stock Sensex shedding at least 54% of its value in 2008.

While investors are often advised to spot low-cost, high-value opportunities in firms with solid credentials when the markets are being pummelled, analysts this time are telling them to adopt a defensive approach given the volatility that is likely to continue into 2009. “The markets will continue to be volatile next year, too," said Sandeep Kothari, a fund manager at Fidelity International’s India arm, who manages three equity funds, in a research note.

Worse, a 17 December note on the global emerging markets fund manager survey by Merrill Lynch and Co., Inc. ranks India as its least preferred market among the Bric (Brazil, Russia, India and China) countries.

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Published: 29 Dec 2009, 05:33 AM IST

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Analysts counsel caution for investors

Analysts counsel caution for investors

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