Expect earnings de-growth to continue in Q1FY10: Dalton Cap
Published on Fri, Jul 03, 2009 at 10:46 | Source : CNBC-TV18
Updated at Tue, Jul 07, 2009 at 21:25
Like this story, share it with millions of investors on M3
0
Like this story, share it with millions of investors on M3
Expect earnings de-growth to continue in Q1FY10: Dalton Cap
UR Bhat, MD, Dalton Capital Advisors, said the markets were not expecting anything dramatic from the budget. “If there is a correction, it will be more severe in midcaps,” he added. He expected earnings de-growth to continue in Q1FY10.
Q: So what is the kind of trading range you see over the next few months beyond the budget?
A: With a neutral budget, I think the trading range cannot be dramatically different than 150 points on Nifty on either side from where we are today.
Q: You don't think a major global sell off is looming in the second half of 2009 because the first half has been so good that some people fear that as we get into the second half maybe September-October, another sale off is looming. You think that fear is overstated?
A: That fear is very much there. We cannot take it off the table, but I think relatively speaking India is slightly better positioned because there is certainly some appetite for equities after the disaster that we saw in last year and that appetite for equities will find its way into India given the growth differentials and given the fact that our financial system has withstood the meltdown that we saw elsewhere - much better than anywhere else in the world.
Therefore, I think money would keep coming into India and even if there is some sort of a correction in the international markets, I don't think it is right for us to assume that that tap would get closed as far as India is concerned. I think that tap would keep itself open.
