Stories
S Naren Identifies Three Market Headwinds: What Should Investors Do Now?
C
CNBC TV18•29-09-2026, 11:09
S Naren Identifies Three Market Headwinds: What Should Investors Do Now?
- •S Naren of ICICI Prudential AMC highlights three key factors impacting markets: elevated crude prices, capital flight to US AI theme, and massive equity supply.
- •Rising US 10-year treasury yields are drawing foreign capital away from emerging markets, with yields at their highest since 2007.
- •Domestic markets face pressure from relentless IPOs, block deals, and offers for sale, absorbing mutual fund inflows.
- •Naren advocates for asset allocation over pure equity investing, recommending debt, balanced advantage, and multi-asset funds.
- •He identifies insurance as a prime contrarian investment opportunity, noting its underperformance and current investor disfavor.
Key Questions Answered
Indian markets are facing headwinds from elevated crude prices, capital flight driven by the US artificial intelligence theme, and a massive supply of equity paper absorbing mutual fund inflows.
S Naren noted that India's IPO market has evolved from being accessible only during limited seasonal windows, like the Himalayan shrines of Kedarnath and Badrinath, to being open almost year-round like Tirupati.
Insurance is considered a prime contrarian bet as the space has underperformed and fallen out of favour following IRDAI draft guidelines on distribution norms, presenting an overreaction and long-term opportunity.
