In an interview to CNBC-TV18, Udayan Mukherjee shared his reading and outlook on market.
On gross domestic product (GDP) numbers the market chose to ignore the backward looking numbers and latched on to the forward looking number which was the auto number and the purchasing managers’ index (PMI) numbers which came in for August, he said.
Street is pinning its hopes on H2FY18 recovery, he added.
Stock prices today are in sync with 8 percent GDP growth but the feeling that one get looking at earnings or generally the economic data which is coming out is more consistent with 5.5 percent kind of growth. There is a bit of disconnect and it is probably explained by the kind of domestic liquidity and the persistent strong global cues, said Mukherjee.
Cabinet reshuffle is a good move by the government. It is a move saying maybe in the next 18 months we will get some of the unsavoury things that have happened in the past few days or months, back on track and we are putting performing ministers in charge of important ministries, so it should go down pretty well with the market. I don’t think it has huge market implications but there is an erosion of credibility because of the events of the last few days, he further mentioned.
On Infosys, he said that the stock price itself should be telling you a story. I don’t think the price action is telling you that the street is very optimistic about how things will improve at Infosys.
Think Infosys is worse off currently versus under Sikka earlier, he added.For full interview, watch accompanying video...