Slowdown in US economy won''t affect India much: Hemendra Kothari, DSP ML

Market experts say the India story is still going strong. Hemendra Kothari of DSP Merrill Lynch too nods in agreement and says that he is bullish on India from the long as well as short-term perspective.

Regarding the impact of the US economy slowdown on India, Kothari says that India will not suffer much, as it is still not too dependent on the international market.

CNBC-TV18 shares with domain-b its exclusive interview with Kothari:

How many investors are you expecting at the investor's conference being held on September 25?
In the last couple of years, when we held the investors conference, we saw large gatherings of investors. In the first year, people just wanted to know what's happening in India and there was a lot of enthusiasm generated.

Since that time, a lot of things have happened and investors would like to see what are the new themes that are developing. So we are looking at the opportunities where they can look to invest.

You had said that in the long-term, you are very bullish on Indian markets. Do you continue to feel that way, given the Sensex where it is and which sectors look exciting to you now?
I remain bullish on a long-term basis as well as on short-term basis. In the current scenario, it looks like interest rates are stabilising and oil prices are softening. We have to be concerned as to what's going to happen to the US markets, as the economy is going to slowdown, particularly the last quarter and the next year.

Now in that case, it can happen that any particular industry, which is dependent on US market, could suffer.

But if people are wondering whether the BPO, IT sectors would suffer, then I think it is the other way round. In fact, when US slowdown takes place, people there would want to cut the cost, so they may outsource more at that time.

India is still not too dependent on the international market, but it is also not totally insulated as it was in the past. Other countries could be affected more.

Regarding the debate about P-notes, you have a lot of foreign clients, how are they taking this? Is there a bit of confusion there?
Confusion is not the right word. People are puzzled as to what's happening on this P-note side. When P-notes came out a few years back, it proved to be of convenience for the investors. But at the same time, we can say there is a concern on the part of the RBI regarding transparency.

Some investors may come in and go out fast. So these are the concerns but that can happen. Like if everybody wants to sell, market comes down. Sometimes the fear can be exaggerated but I do no totally disagree with RBI.

But at the same time the market has become quite big on P-notes, the amount of money, if you try and say that in certain time we would just like to stop P-notes, it could be difficult and it can create chaos with the investors.