In an interview with CNBC-TV18, Ashish Dhawan, Senior MD, Chrys Capital, spoke about his reading of the market and his outlook.
Here is a verbatim transcript of the exclusive interview with Ashish Dhawan on CNBC-TV18. Also watch the accompanying video.
Q: The market is in good shape, but what is your sense of what lies ahead in 2010, globally and locally?
A: I am quite concerned about 2010, we have had a fantastic run in global economies and also in the markets in 2009. I am still a believer that we are still not out of the woods in the Western world, there is still 30% chance of a double dip recession and clearly consumer spending is not going anywhere for years to come, for probably the next three-four years. So I am genuinely concerned that we have got shaky footing in the Western world.
When I look at markets particularly in India, it is completely a liquidity rally, yes, earnings are somewhat better, but I think the expectations now are way ahead of what companies will deliver. So my general take is that markets in India are ahead of themselves even though the economic climate or the macroeconomic climate is very benign.
Q: You think stocks are generally overvalued in India?
A: My sense is that the public markets are probably 20-25% overvalued, above what I think is fair value for the market.
