Kotak’s Nilesh Shah says ‘Quit Emerging Market’ Movement Underway

Nilesh Shah, Managing Director of Kotak Mahindra AMC, highlights a growing trend among foreign investors pulling money out of emerging markets, including India. He describes this trend as a “quit emerging market” movement, noting that India remains an exception in a struggling market. Shah advises investors to stick to asset allocation, maintain realistic expectations, and stay invested through Systematic Investment Plans (SIPs). Despite FIIs pulling out nearly $10 billion from Indian markets, domestic investor confidence remains strong.

Shah emphasizes the importance of educating investors about shifting household savings from cash to equity markets to sustain inflows. He believes that large caps are likely to perform better and advises focusing on reasonably valued sectors. Shah remains positive on the Indian equity market, despite broader concerns about emerging markets.