Market assumes easy re-election for incumbent govt, says Pratik Gupta

The recent spike in volatility, often observed preceding big events, is compounded by quarterly earnings and a renewed focus on China, according to PRATIK GUPTA, chief executive officer and co-head of Kotak Institutional Equities. In an email exchange with Samie Modak, Gupta highlights that Indian markets are currently displaying signs of being relatively expensive, cautioning investors, particularly in the smallcap space. Edited excerpts:

Volatility has spiked recently. What, in your opinion, is driving this increase?

This phenomenon often precedes big events, such as India’s election results on June 4. Additionally, we’re witnessing sharp stock-specific reactions to companies’ January-March quarterly results.

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