Find out: Why Veda Investments is betting on PSBs

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Find out: Why Veda Investments is betting on PSBs

The listlessness in the markets seems to have taken a back seat on stellar performance for two heavyweights—State Bank of India and Tata Motors on Thursday.

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The listlessness in the markets seems to have taken a back seat on stellar performance for two heavyweights-State Bank of India and Tata Motors on Thursday. In an exclusive interview with CNBC-TV18, Vikas Pershad of Veda Investments spoke about this reading of the market and what, according to him, will the future look like.

This, he said was a difficult time for raising capital. "The investor focus since the past few months has been narrowing. However, I see India allocation increasing."

Commenting on the global picture, he said the economic data world over was a matter of concern.

Further Pershad explains his rational behind liking the private sector banking space. "Even as things slow down a little bit temporarily in India and get temporarily difficult around the world along with the risk appetite coming down, that's certainly one sector where I continue to be very interested in, very invested in and I think that's one sector I stay in for the long term."

Below is a verbatim transcript. Also watch the accompanying videos.

Q: Give us a word on the global set up where data has been at best quite patchy. What have you made of it and what do you think it is pointing towards?

A: At the beginning of August, I went to more cash than I had been at anytime since late June. Secondly, the poor data coming out of the US, Western Europe, Japan, is not a surprise, but what is surprising is the consistency of it, the magnitude of it.

On Thursday you saw the jobless claims numbers come out of US that was worse than expected and not just incrementally but meaningfully worse than expected. Unsurprisingly, the data out of Japan is not too good either. You have the three largest economies in the world which account for over 60-70% of global gross domestic product (GDP), the Eurozone, the US and Japan, they continue to struggle. I do not see that changing anytime soon. I reduced risk globally.

Even in India, I was among the people who was surprised at how muted the earnings growth was, not bad by any stretch but not as exciting as I would have expected. There are some pockets of very strong growth in India. Tata Motors was one example. In general people are beginning to realize that we are going to be in slower growth, it is going to be first-second gear growth period for a number of years, not higher.