A Balasubramanian, MD & CEO, Harish Krishnan, CIO-Equity of Aditya Birla Sun Life AMC
The topsy-turvy ride of equity markets has been giving sleepless night to investors. Mutual fund investors have also turned anxious with their SIPs delivering negative in last two-three years. businessline caught up with A Balasubramanian, MD and CEO and Harish Krishnan, CIO-Equity, of Aditya Birla Sun Life Asset Management Company to understand what lies ahead for investors. Excerpt:
Will the rise in crude oil pose a challenge for India?
Balasubramanian: India has handled recent oil price volatility better than many expected because it has diversified crude sourcing, reducing supply-side risks. Policymakers have also managed demand effectively, while rapid growth in renewable energy is lowering the country’s long-term dependence on imported fossil fuels. As long as crude prices remain below $100 a barrel, the economy should be able to absorb higher prices without major disruption. Fuel price increases are now being passed on to consumers more effectively, and with inflation under control, the broader macroeconomic impact has remained limited.Harish Krishnan: India’s energy intensity has steadily declined as the services sector has expanded, making the economy less vulnerable to energy price shocks. The next priority is strengthening energy security by expanding transmission infrastructure for renewables and increasing domestic manufacturing across the clean energy value chain. Coal gasification also offers an opportunity to reduce dependence on imported fuels over the medium term by making better use of India’s abundant coal reserves.
