Parag Thakkar, Head-Sales, HDFC Securities believes with the government and RBI both making the right moves, the domestic cyclicals should be on ones radar.
Rashesh Shah Chairman & CEO, Edelweiss Financial Services says RBI cutting repo rate by 50 basis points and the country’s biggest public sector lender State Bank of India following it with a 40 basis points base rate cut shows that banks are ready for transmission, which could be a big game changer.
Shah believes flows coming in through mutual funds, insurance companies, direct investor would strength and be the key catalysts for markets going forward because concerns on global growth could continue for some more time.
When one witnessed massive outflows from emerging market funds, the domestic institutions supported Indian market.
The cut in rate would make investing in equities more attractive for investors than just parking their money in fixed deposits etc., says Shah.
In the same interview CNBC-TV18’s Sonia Shenoy and Anuj Singhal also spoke to Parag Thakkar, Head-Sales, HDFC Securities, Kunal Bothra, Head - Advisory, LKP and Neeraj Deewan Director, Quantum Securities on the way forward for markets.
Thakkar believes domestic cyclicals is the space to be in. With the government and RBI both making the right moves, the domestic cyclicals should be on ones radar.
One could definitely see improvement in micros and macros on the domestic side but it would be a while before earnings would come back, says Thakkar.
All the market experts believes that global growth would still lag in the coming quarters but the base for the Indian market or the downside seems to be capped.
According to Shah, the surprise 50 basis point rate cut by the Central Bank indicates that inflation seems to be under control, and in all likelihood the retail inflation one-year down the line could be 4-5 percent, which could give further room for RBI to cut rates, says Shah in an interview to CNBC-TV18.
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