Nifty valuation decent and reasonable; markets may see some small correction: Union Minister Goyal
Mumbai, Mar 1 (PTI): After some sell-off during the week, Union Minister Piyush Goyal on Saturday opined that the 50-share benchmark Nifty's valuation is decent and reasonable.
Goyal, who oversees the commerce and industry portfolio, said that there can be some more correction in the offing for the Indian markets.
A forward price-to-earnings ratio of 19 makes the Nifty valuations "decent" and "reasonable".
"Some of them (Nifty stocks) may have seen some downfall, but by and large the Nifty still reflects decent valuations," Goyal said, speaking at an event organised by mutual fund industry's lobby grouping Amfi here.
"At a P/E ratio of 19 for a developing nation which is the fastest growing country, it (valuation) is still reasonable - some small correction here or there may still happen," he added.
Goyal said that the ongoing correction in the markets should serve as a wake-up call for the ones who have not advised the small investors properly, and asked Amfi to ensure that it isolates those who have given bad advice to clients.
He also suggested that MFs should not give up on their duty and commitment to the larger market, and not concentrate on the returns alone.
Goyal, a chartered accountant, said the last 2-3 years have been a period of crazy growth in the market where the prices of a lot of stocks were driven by a compulsion of the market to deploy funds that they were receiving, and also the fear of missing out.
All the stakeholders have to reflect on the happenings in the recent past, he said, stressing that we cannot ignore the perils of the investment culture we have seen developing in some parts of the market.
He seemed to be particularly concerned with the activity in smaller companies and wondered how an auto dealer commanded huge valuations recently.
Without taking names, Goyal said a free trade agreement with one country is "almost done" and two more are chasing the government for a similar pact.
Earlier in the day, speaking at the Mumbai Tech Week, he said AI was used during the discussions on an FTA with the European Commission.
He also said that the fledgling AI field doesn't require an "industry status".
"The ghost of the industry tag has become very outdated," he said, adding that if you get the industry status, one can call inspectors to private houses.
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Sujit Nair raises concerns over speculation of DMK-AIADMK understanding to block TVK
Chennai: Journalist and political commentator Sujit Nair has expressed concern over speculation that the Dravida Munnetra Kazhagam and the All India Anna Dravida Munnetra Kazhagam could explore a post-poll understanding to prevent Vijay-led Tamilaga Vettri Kazhagam from forming the government in Tamil Nadu.
In a social media post, Sujit Nair said the election verdict in Tamil Nadu reflected a clear public demand for political change and argued that the mandate should be respected irrespective of political preferences.
Referring to reports and political discussions surrounding a possible understanding between the DMK and AIADMK, he said he hoped such developments remained only speculative conversations and did not turn into reality.
Nair stated that if such an alliance were to take shape, it would raise serious questions about ideological politics in the country. He said TVK had emerged through a democratic electoral process and that the legitimacy to govern in a parliamentary democracy comes from the people’s verdict.
According to him, attempts to prevent an electoral winner from forming the government through unexpected political arrangements may be constitutionally valid, but many people could view them as politically opportunistic.
He further said that such a move could particularly affect the political image of the DMK, which has historically projected itself around ideology, social justice and opposition politics. Nair said that in ideological terms, the DMK appeared closer to TVK than to the AIADMK, and joining hands with its long-time political rival only to remain in power could weaken its broader political narrative.
He added that the same questions would apply to the AIADMK as well, as the party had spent decades positioning itself against the DMK and such an arrangement could create discomfort among its cadre and supporters.
Drawing a comparison with Maharashtra politics in 2019, Nair said he had expressed similar views when the Shiv Sena formed an alliance with the Indian National Congress and the Nationalist Congress Party after the Assembly elections.
He said post-poll alliances between long-standing political rivals often create a public perception that ideology and electoral mandates become secondary when political power equations come into play.
Nair also said such developments increase public cynicism towards politics and reinforce the belief among voters that ideology is often sidelined after elections.
He maintained that the Tamil Nadu verdict was emphatic and said respecting both the spirit and substance of the mandate was important for the credibility of democratic politics.
