UTI chief predicts market revival

CALCUTTA, APR 25: The Unit Trust of India chairman P S Subramanyam on Tuesday said capital market is poised to improve after correction. N...

CALCUTTA, APR 25: The Unit Trust of India chairman P S Subramanyam on Tuesday said capital market is poised to improve after correction. No matter what is happening now, market will look up considering strong fundamentals, he said.

Subramanyam said if dividend tax was seen in a different perspective as it will discourage companies from paying higher dividend. He said things would change if the fund thus available is utilised for modernisation and improving profitability.

It hardly matters to an investor if a company announced even 100 per cent dividend and the market price of share Rs 1,000, he said adding, I am sure the sentiments will improve if Indian investors change their perspective, then the market would start behaving in a positive way.

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To a question on whether Sebi should ban short selling, the UTI chief said, it is for the Sebi to decide. I think they will discuss the matter in today’s meeting.

India is well poised to emerge as an economic power and that too on solid fundamentals. Interests rates are coming down which will reduce the cost of borrowing of corporates and this is going to be an important contributing factor for higher profits and higher market capitalisation, Subramanyam said.

Indian industry will have enormous opportunities to export goods in the wake of considerations, he said and added that in next two years mergers and acquisitions will become more pronounced.