What effect will rising crude oil prices have on the markets?
Rising crude prices pose a serious risk to performance of equities. Given that India is a net importer of crude oil in a big way, higher oil prices are bound to impact our companies. Our consumption of petroleum products is worth over $100 billion, nearly 10% of our GDP. At current crude oil rates, the burden on oil companies and the government would be over Rs 70,000 crore. This will also affect the fiscal deficit situation. Though, most metal commodities continue to exhibit strong prices currently, on the back of the global economic recovery, I do not think these would be sustainable. What are the challenges involved in running a large fund and how do you deal with them? As our investors have a lock-in for three years and usually tend to stay invested much longer than three years, we have a long-term approach in investing. This philosophy is useful in managing a large fund size. Our focus is to identify companies that have growth potential with good returns on capital employed. Based
