Feroze Azeez Decodes India’s Big Market Risks

In a detailed discussion on market volatility and asset allocation, Feroze Azeez, Joint CEO at Anand Rathi Wealth, addressed the current surge in gold prices and its impact on India’s balance of payments. Responding to the Prime Minister’s appeal to halt gold purchases, Azeez proposed a mathematical solution to the projected $65 billion deficit, stating, “We all Indians should sell one percent average gold of what we own.” He explained that liquidating a small fraction of gold holdings, particularly through ETFs, could significantly alleviate the country’s import burden. Azeez also analyzed the rupee-dollar exchange rate, noting that the RBI’s $5 billion currency swap provides necessary liquidity to curb panic buying. He projected that the rupee could stabilize, adding, “I think 90 could be a level if we become very sensible in spending our dollars at these times.” Furthermore, Azeez highlighted the long-term outperformance of equity mutual funds over gold and emphasized the importance of Systematic Investment Plans in navigating market corrections and generating positive returns.