N Jayakumar, President, Prime Securities in an interview with CNBC-TV18 shared his views on the outlook for the market going forward, the October monetary policy and other macros.
He is still bullish on the market and expects to see new highs going forward. Nifty is unlikely to break 9700 in a hurry, he adds.
He does not think the market has peaked out yet but says the market needs to break out of the range. The volatility could be of 2-3 percent at best and market will move on. According to him, earnings are expected to catch up – be it pick up commercial vehicles, which is already noticeable, electricity demand – the merchant power prices are at multiyear highs, which means more power purchase agreements (PPAs) will get signed etc., so there is enough happening to help market and economy revival.
“Markets act 6-7 months ahead of revival,” says Jaykumar.
Talking about the October monetary policy, he says it was broadly in line with expectations and it is clear that market is not getting any monetary help except maybe an SLR cut, which may help a few private sector banks.
According to him, more than earnings the bigger thing going to happen this quarter and into January is NCLT resolution process because the biggest bulwark of a market is the banking system, which has been underperforming especially the PSUs. He thinks PSU banks and the market would be surprised with the bids that come in for stressed assets and banks could be huge beneficiaries. Jaiprakash Associates also has far more assets than debt, he says.
He also advices as a portfolio PSU banks must be bought. One could also look at power generators, he adds.For the entire conversation, watch video