Latest news with #SwarupMohanty
Mint
31-07-2025
- Business
- Mint
Indian markets stare at short-term jitters from Trump's tariff hit
Local shares could extend their decline on Thursday after US President Donald Trump slapped a 25% tariff on imports from India, along with an unspecified penalty a day earlier. Stocks of textiles, pharmaceuticals, and automotive component companies—key Indian exporters—are likely to be hurt the most, said experts. However, they also expect the fall to be short-lived on hopes of a trade deal eventually being struck. India and the US are negotiating a bilateral trade agreement, and the next set of talks are scheduled in August. The benchmark Nifty, which fell 3.1% over the past four weeks to 24,837 last Friday, recovered marginally to 24,855.05 on Wednesday. The tariff announcement came after the markets closed and could result in investors taking fresh bearish positions. Market brace for impact The market was expecting a 20% tariff. However, an additional 5 percentage point tariff rate along with an unquantified penalty 'could result in a knee-jerk reaction", said Swarup Mohanty, CEO of Mirae Asset Investment Managers, which manages ₹2 trillion. 'But things will begin to stabilise sooner than later as a large part of the uncertainty is out of the way. It's a negotiating tactic and we could reach a deal soon." Read more: US tariffs, penalties may impact India's oil supplies, lift global prices Options traders had baked in a 1% move from 24,900 in the Nifty, with a range of 24,780-25,020, at Wednesday's closing. That range is now likely to break on the downside after the tariff announcement. In the past four weeks, the markets were already under pressure as a weakening rupee and higher stock valuations than other emerging markets prompted foreign portfolio investors (FPIs) to pull out over ₹32,000 crore from Indian equities in July — a sharp reversal from their buying trend last month. The rupee declined 2.2% over the past month—from 85.49 on 27 June to 87.42 against the US dollar on Wednesday—to its lowest level in five months. The fiscal first-quarter earnings of Indian companies have also been weak. Consolidated profits of 704 companies fell 6.2% over a year earlier. The Nifty trades at a price-to-earnings multiple of 22.8 times on a trailing basis, compared to 14.21 for the Kospi index. Not only is the Korean market the best performer in Asia, it also closed Wednesday at a four-year high. The Nifty at Wednesday's closing is almost 6% off its record high of 26,277.35 on 27 September 2024. Still, money managers such as Ashish Gupta, who oversees assets of ₹3.37 trillion as chief investment officer at Axis Mutual Fund, believe that there could be at best a short-term knee-jerk reaction. "DIIs (domestic institutional investors) will continue to buy at lower levels, which will cushion any fall," he said. To be sure, while FPIs have sold cash shares worth ₹1.32 trillion in the year to date, domestic institutional investors have purchased shares worth ₹4.12 trillion over the same period. Read more: US tariffs cloud outlook for Indian exports, trigger growth concerns One area of concern for FPIs is the weaker local unit, which dents their dollar returns. With the tariff tensions persisting, the rupee could weaken a tad more before the Reserve Bank of India intervenes to keep it within a range of 86-87 in the month ahead, according to Madan Sabnavis, chief economist at Bank of Baroda. "The stock market reaction to the tariff imposition won't be longer than a few days," added Sabnavis. Still, some economists expect the higher-than-expected tariff to hit India's GDP growth. 'When the US had initially imposed tariffs, we had lowered our forecast of India's GDP expansion to 6.2% for FY2026, presuming a tepid rise in exports and a delay in private capex," said Aditi Nayar, chief economist at ICRA Ltd. 'The tariff (and penalty) now proposed by the US is higher than what we had anticipated, and is therefore likely to pose a headwind to India's GDP growth. The extent of the downside will depend on the size of the penalties imposed." What's also worrying economists is that the 25% rate for India is higher compared to the lower rate for peers such as Vietnam, Indonesia and the Philippines. India competes with these countries 'in a similar category of labour-intensive products and electronic goods", said Garima Kapoor, economist and executive vice president, Elara Capital. 'In response to President Trump's recent imposition of a 25% tariff and penalties on Indian goods, investors will reassess their strategies with a mix of caution and optimism," said Utsav Verma, head of research-institutional equities, Choice Broking. Sectors like textiles, pharmaceuticals, and automotive components—key Indian exports—are likely to be most impacted and may see reduced investor interest in the short term, he Sharma contributed to the story. Read more: Trump's 25% tariff will immediately impact India's export-intensive sector: FICCI's Director General Jyoti Vij
Economic Times
21-07-2025
- Business
- Economic Times
Valuations may be high, but India's long-term story remains unshaken: Swarup Mohanty
ET Bureau We have to grow at 6% is our house commentary, but that 6% versus 2 and that is something which people need to internalise. "While there is an impact of tariffs, we can be on our own in our own capacity and then that is something which we need to realise that our cars can be consumed by our own people," says Swarup Mohanty, VC & CEO, Mirae Asset Investment Managers. So, much work goes on behind what you do, I mean 17 years old fund, I was just looking at that, 45 number of schemes and an aum size of over two lakh crores. What does it feel like to have this kind of journey clocked in in 17 years. Swarup Mohanty: No, it is a very humbling experience. First of all, always a humbling experience to be in a fiduciary role. I mean to enjoy the trust of somebody else's money is very overwhelming to start with and then when we started as a global asset manager, today we stand in India as the only organic global asset manager in the country. It has not been very easy for global asset managers and then to be sitting with over 70 lakh folios is something which we had not thought of. Maybe AUM we would have thought of, but to be enjoying so many investors trust is pretty overwhelming. One is… That is the India story right, rising with India. Swarup Mohanty: Yes, absolutely, rising with India. But this 17 years of experience, you are a Korean company, India as a market was something that I do not think so Korean at that time must have thought that will flourish like this. I really want to understand the transition in last 17 years as an Indian investor as a Korean company that you have witnessed. Swarup Mohanty: I must tell you that our chairman Mr Hyeon Joo Park is a fund manager himself. He started the mutual fund industry in South Korea. We are probably the first financial company to set out of South Korea to build base. We came in 2006-2007 and when the team came to India and then there was this call from here to our chairman why are we here, there is nothing here, the reply was that is exactly why we are here. Trust me and I got the chance to narrate the same story to the prime minister of this country is that sometimes I wonder what they see in India that we do not see. They are so one-sided in their view on the structural growth of this country is incredible to sort of note because I have sat in rooms of 200 people, 199 Koreans and me the only Indian and on stage our chairman says that only one country will flourish in the next 10 years. One country when you single out, you sort of think what is happening. Maybe they can see things more in a neutral manner from the outside, some things we get a little biased about. We were just discussing the more boring the more biased you make it, the better the outcome. But having said that in the last 17 years and we must give credit where it is due, the Indian investor also has come a long way. I mean, 17 years back who would have thought that your fund alone is going to manage the AUM size that you have. Having said that, the Indian investor always gets edgy with the news headlines and all the noise around. What is it that you are making of all that is happening right now, this concern around what is going to happen with the tariffs, what is going to happen on the global slowdown front and of course, the India story wherein valuations are always a question mark. Swarup Mohanty: Yes, one, of course, when a country like the US starts changing in behaviour, everybody else's behaviour also starts changing, we are in that phase. But as this I mean tenure starts expanding, people will accept that and form their own opinion. I personally feel that from defence to capital markets every country is now reworking its own strategy, that is the time and such a phenomenal time to be sitting in the world at this moment and then probably each country will start defining their own style in the world and then probably India will shine in that is my bet on it. The second part is from the investors. I mean today if you look at the market and all of you kind of talk about it many times is that the market shifted to that single retail investors who have come together and piled this 26,000, 27,000 crores of support to the market on a monthly basis and that is where is the behavioural shift. I had not thought that I would see this before my retirement. I would joke about it, but it is so fascinating to see that and as the demography is shifting, right now three generations are investing together which had never happened in my career. My father's generation, my generation, my sons, my sons' generation is something which will turn it around. I am extremely bullish of their behaviour. I am very confident of their ability to see the long-termness if there is a word like that of the India story and good days ahead is what I can say. But what do you make of the current market construct? Like we are saying with all the talk around tariffs and still question mark on which way the tariffs are going to go for India and we are still awaiting that 'letter' and valuations which are not really as comfortable as we have seen in the past. What is the next one year looking like with all the uncertainties around? Swarup Mohanty: My personal take is India is a structural growth story that is a given globally. If there is a growth story, it is India. So, based on that India will definitely have its own negotiation powers, negotiation levers when it comes to that negotiation table for the tariffs. I mean, the fact is every country would like to participate in this country because wealth is being created at an individual level as we speak and it will be the largest consumption market a third probably to US, China we are there. So, while there is an impact of tariffs, we can be on our own in our own capacity and then that is something which we need to realise that our cars can be consumed by our own people. Our produce can be consumed by our own people. So, net-net we are at this moment a very isolated story from the rest of the world. When you do the headlines compare whether those headlines appeal to our country, it is very strange to say that India will remain isolated on data points and strong consistent data points. While some of us get disappointed when growth comes down to 6%, world is growing at 2-3%. It is not good. But we get disappointed at 6%. We have to grow at 6% is our house commentary, but that 6% versus 2 and that is something which people need to internalise. But we need to have high benchmarks for our market. Swarup Mohanty: We should.
Time of India
21-07-2025
- Business
- Time of India
Valuations may be high, but India's long-term story remains unshaken: Swarup Mohanty
"While there is an impact of tariffs , we can be on our own in our own capacity and then that is something which we need to realise that our cars can be consumed by our own people," says Swarup Mohanty , VC & CEO, Mirae Asset Investment Managers . So, much work goes on behind what you do, I mean 17 years old fund, I was just looking at that, 45 number of schemes and an aum size of over two lakh crores. What does it feel like to have this kind of journey clocked in in 17 years. Swarup Mohanty: No, it is a very humbling experience. First of all, always a humbling experience to be in a fiduciary role. I mean to enjoy the trust of somebody else's money is very overwhelming to start with and then when we started as a global asset manager, today we stand in India as the only organic global asset manager in the country. It has not been very easy for global asset managers and then to be sitting with over 70 lakh folios is something which we had not thought of. Maybe AUM we would have thought of, but to be enjoying so many investors trust is pretty overwhelming. 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Swarup Mohanty: Yes, absolutely, rising with India. But this 17 years of experience, you are a Korean company, India as a market was something that I do not think so Korean at that time must have thought that will flourish like this. I really want to understand the transition in last 17 years as an Indian investor as a Korean company that you have witnessed. Swarup Mohanty: I must tell you that our chairman Mr Hyeon Joo Park is a fund manager himself. He started the mutual fund industry in South Korea. We are probably the first financial company to set out of South Korea to build base. We came in 2006-2007 and when the team came to India and then there was this call from here to our chairman why are we here, there is nothing here, the reply was that is exactly why we are here. Trust me and I got the chance to narrate the same story to the prime minister of this country is that sometimes I wonder what they see in India that we do not see. They are so one-sided in their view on the structural growth of this country is incredible to sort of note because I have sat in rooms of 200 people, 199 Koreans and me the only Indian and on stage our chairman says that only one country will flourish in the next 10 years. One country when you single out, you sort of think what is happening. Maybe they can see things more in a neutral manner from the outside, some things we get a little biased about. We were just discussing the more boring the more biased you make it, the better the outcome. Live Events But having said that in the last 17 years and we must give credit where it is due, the Indian investor also has come a long way. I mean, 17 years back who would have thought that your fund alone is going to manage the AUM size that you have. Having said that, the Indian investor always gets edgy with the news headlines and all the noise around. What is it that you are making of all that is happening right now, this concern around what is going to happen with the tariffs, what is going to happen on the global slowdown front and of course, the India story wherein valuations are always a question mark. Swarup Mohanty: Yes, one, of course, when a country like the US starts changing in behaviour, everybody else's behaviour also starts changing, we are in that phase. But as this I mean tenure starts expanding, people will accept that and form their own opinion. I personally feel that from defence to capital markets every country is now reworking its own strategy, that is the time and such a phenomenal time to be sitting in the world at this moment and then probably each country will start defining their own style in the world and then probably India will shine in that is my bet on it. The second part is from the investors. I mean today if you look at the market and all of you kind of talk about it many times is that the market shifted to that single retail investors who have come together and piled this 26,000, 27,000 crores of support to the market on a monthly basis and that is where is the behavioural shift. I had not thought that I would see this before my retirement. I would joke about it, but it is so fascinating to see that and as the demography is shifting, right now three generations are investing together which had never happened in my career. My father's generation, my generation, my sons, my sons' generation is something which will turn it around. I am extremely bullish of their behaviour. I am very confident of their ability to see the long-termness if there is a word like that of the India story and good days ahead is what I can say. But what do you make of the current market construct? Like we are saying with all the talk around tariffs and still question mark on which way the tariffs are going to go for India and we are still awaiting that 'letter' and valuations which are not really as comfortable as we have seen in the past. What is the next one year looking like with all the uncertainties around? Swarup Mohanty: My personal take is India is a structural growth story that is a given globally. If there is a growth story, it is India. So, based on that India will definitely have its own negotiation powers, negotiation levers when it comes to that negotiation table for the tariffs. I mean, the fact is every country would like to participate in this country because wealth is being created at an individual level as we speak and it will be the largest consumption market a third probably to US, China we are there. So, while there is an impact of tariffs, we can be on our own in our own capacity and then that is something which we need to realise that our cars can be consumed by our own people. Our produce can be consumed by our own people. So, net-net we are at this moment a very isolated story from the rest of the world. When you do the headlines compare whether those headlines appeal to our country, it is very strange to say that India will remain isolated on data points and strong consistent data points. While some of us get disappointed when growth comes down to 6%, world is growing at 2-3%. It is not good. But we get disappointed at 6%. We have to grow at 6% is our house commentary, but that 6% versus 2 and that is something which people need to internalise. But we need to have high benchmarks for our market. Swarup Mohanty: We should.
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Business Standard
21-07-2025
- Business
- Business Standard
Sebi's AMC-family office plan sparks concerns over regulation and parity
Sebi's plan to let AMCs manage non-broad-based pooled funds without PMS licences has sparked debate over regulatory parity, competitive fairness, and market safeguards New Delhi The Securities and Exchange Board of India's (Sebi's) recent proposal to permit asset management companies (AMCs) to manage family office funds has stirred debate, with concerns surfacing around regulatory overlap and market parity. On July 7, Sebi released a consultation paper suggesting major relaxations to existing regulations. The key proposal includes allowing AMCs to manage non-broad-based pooled funds—such as family offices and certain offshore vehicles—without obtaining a separate portfolio management services (PMS) licence, provided strict checks and balances are implemented. 'If AMCs are allowed to offer segregated mandates to large clients under a new category, the lines between PMS and mutual funds (MFs) will blur further. This raises regulatory parity questions,' said Sonam Srivastava, founder and fund manager at Wright Research PMS. She argued that PMS managers operate under stricter minimum investment thresholds, compliance costs, and client suitability obligations. 'If AMCs are allowed to offer similar services under the MF umbrella but with lighter-touch regulation or brand-driven advantages, it could lead to competitive imbalance and arbitrage,' she added. Uneven playing field and a new revenue stream Until now, AMCs interested in offering management and advisory services to such funds were required to hold a PMS licence, a layer of regulation the AMC sector contended created an uneven playing field compared to other intermediaries. Sebi's latest proposal opens up a new revenue stream for the domestic mutual fund industry, which handles assets worth Rs 75 trillion. 'The proposals could enable AMCs to engage with a wider spectrum of pooled vehicles which are non-broad-based, such as family offices or select offshore funds, which were earlier outside the regulatory scope,' said Swarup Mohanty, vice-chairman and chief executive officer, Mirae Asset Investment Managers (India). Safeguards, definitions and structural implications Under the proposal, non-broad-based funds are defined as those with fewer than 20 investors, or where a single investor holds more than 25 per cent of the corpus. Sebi has outlined safeguards to address potential conflicts of interest, including caps on fee differentials, resource allocation norms, and clear firewalls between mutual fund and private mandates. Pradeep Gupta, executive director and head of investments at Lighthouse Canton India, said a new set of investors would benefit from an experienced and well-resourced buy-side investment architecture that has proven itself across multiple market cycles. Market structure, HNIs and the competitive landscape A recent Jefferies report indicated that the high-net-worth investor (HNI) segment is already crowded, with revenue streams layered through various commissions and fees. Professional wealth managers now oversee assets exceeding Rs 65 trillion, and the space is witnessing strong competitive momentum for deepening service offerings. The report noted a likely trend towards advisory-led models as wealth managers look to tap larger-ticket clients. Despite concerns over increased competition, several PMS managers believe their established expertise in serving ultra-HNI requirements will remain a key differentiator. Divam Sharma, co-founder and fund manager at Green Portfolio PMS, said AMCs entering this space will heighten overall competition, but will also be subject to tighter controls on fees and operations. 'We've already built the systems and expertise needed for personalised, complex wealth solutions, so most family offices will continue to seek out hands-on, bespoke service,' he added. To allay concerns, Sebi has proposed permitting ancillary activities for AMCs, including fund distribution and global marketing. Public comments on the consultation paper are open until July 28, with market participants expecting a final framework before the end of the year.
Time of India
19-06-2025
- Business
- Time of India
Why are savvy HNIs turning to ETFs during market dips?
Agencies Live Events Mumbai: Savvy mutual fund investors have been buying the dips using equity Exchange-traded Funds (ETFs). Data from ETIG shows that over the past year, trading activity in ETFs on the National Stock Exchange (NSE) has seen spurts on days the Nifty has fallen more than 1%."We've consistently observed that ETF volumes spike on days when the market or the underlying index falls," says Swarup Mohanty, vice-chairman & CEO, Mirae Asset Investment Managers (India).For instance, on April 7, when Nifty fell 3.24% amid tariff hikes and backlash from China, ETFs worth ₹5,810 crore were traded on NSE. This was more than double the previous five-day average of ₹2,766 crore. Similarly, on February 28, when the Nifty 50 declined 1.86%, ETFs worth ₹2,813 crore changed hands compared with the five-day average of ₹1,585 crore. ETFs are traded like stocks and returns mirror the moves of the underlying index like Nifty or Bank largely the more informed investors, such as family offices and the affluent that are implementing this investment strategy . "Several HNIs (high networth individuals), family offices and institutions use any volatility and intraday dips to buy ETFs," says Saket Kumar, co-founder, "ETFs carry lower risk than individual stocks, making them an attractive option."Mohanty adds that these investments during market dips are being made either for the long term or for short-term tactical purposes.'Buy the dips' is a strategy where investors take advantage of short-term market declines to buy stocks or ETFs at lower prices on the belief that the decline is find ETFs cheaper compared with index funds, which are bought and sold directly by the mutual funds . The Nifty ETF carries an expense ratio as low as 5 basis points with no recurring costs. In contrast, a Nifty 50 index fund (direct plan) could charge between 5 and 20 basis ability to buy and sell immediately is a key advantage that ETFs have over index funds, where investors must wait for the day-end net asset value (NAV)."There are no exit loads in ETFs, the expense ratio is low, and investors can buy or sell during market hours, which is attracting more investors to the product," says Arun Sundaresan, head - ETF, Nippon Life India Asset Management
