Desai: Domestic Share Owners Are Price Setters In India

The video discusses the role of price setters in India, drawing parallels with the US in the 1980s. It highlights the impact of policy changes on equity investments and inflation targets. The discussion covers domestic and foreign investment trends, corporate earnings, and market challenges, including the IT sector's performance and recession risks. The video also explores retail investment patterns and asset allocation, emphasizing the potential for continued equity inflows despite market volatility.

What significant change in investment policy occurred in India in 2015?

• Increasing interest rates on savings accounts

• Banning foreign investments in the stock market

• Allowing pension funds to invest in equities

• Introduction of a new tax on equities

What has been a major concern for foreign investors regarding the Indian stock market?

• Low corporate profits

• Relative valuations compared to other emerging markets

• Lack of government support

• High inflation rates

How did Corporate India respond to rising raw material costs?

• By reducing production

• By increasing product prices

• By absorbing costs to maintain volume growth

• By cutting employee wages

What is the potential impact of a US recession on the Indian IT sector?

• Increased demand for IT services

• No impact on the IT sector

• Higher profit margins for IT companies

• Reduced spending by US companies

What percentage of Indian household savings is typically invested in equities?

• 20%

• 10%

• 50%

• 5%

Which asset class is considered at risk relative to equities in India?

• Cryptocurrency

• Fixed income

• Real estate

• Gold

What is the expected performance of the Indian stock market compared to the US market over the next year?

• The US market is expected to outperform

• The Indian market is expected to outperform

• Both markets are expected to perform equally

• The Indian market is expected to underperform