10-15% mkt rise in a month not good for India: Blackstone

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10-15% mkt rise in a month not good for India: Blackstone

In an interview with CNBC-TV18, Punita Kumar Sinha, Managing Director of Black Stone Group, spoke about her market outlook.

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Excerpts from Bazaar on CNBC-TV18 Watch the full show » RELATED NEWS Nifty continues consolidation; telecom gains Global good news to push Nifty towards Jan highs Nifty may see expiry around 5250-5300: An analysis ALSO READ See what other FIIs are saying about the markets See what other experts are saying about markets See what Udayan Mukherjee is saying about the markets Nifty BSE | NSE 31/05/12 Are Mutual Funds betting on Nifty?

Q: There are some broad midcap clusters where we have seen some outperformance any broad clusters which you are picking from or where you are seeing value?

A: There is opportunity in every sector. But I would give you one example we have seen some of those turnarounds in some smaller real estate, retail, mall and that segment we see some turnaround situations.

Q: Do you think it can become a 1990s situation in India where we go through a ranging kind of pattern for not just a few months but for a few years but individual stock portfolios still generate a lot of return?

A: I haven't thought of it that way but that definitely seems possible and we need to be mindful of the fact those in years where inflation is generally high the valuation multiples for the broader market generally are at risk and can contract.

So keeping that in mind the broader market might not do as well as some of the stock specific opportunities that you can find that might do even better than the broader market.

Q: If you had to stick your neck out, you think we would be okay globally next year or you can't say?

A: I do think there are still a lot of risks to the global economy. There are a lot of structural problems particularly in Europe and US. Being in the US I can see some of the structural issues that are going to be remaining for a while and they are not going to go away any time soon.

So while this year might still sail through because of stimulus and productivity gains that companies have seen and earnings might still come through the structural problems are not getting addressed anytime soon.

So having those structural issues there I think the global economy overall may at some point take a turn for the worse even though it may rebound this year. I just don't know the timing of that but I am not so optimistic on the US economy.

That is one of the reasons the Indian economy is looking so good to people who are sitting overseas. I think after a couple of years this trip I am finding people are very optimistic and it hasn't been the case for several years. In the past people have been more sceptical.

But somehow this time around after the Budget I am finding people more positive towards India. Unemployment in the US is still a huge concern which is a big contrast to what you see in India. In India there is tremendous job creation and the US job creation is lagging productivity gains. So that is something that needs to get addressed for the economy to look healthy.