Earnings growth in India has been very choppy in last one year, Jonathan Garner, Chief Asia & EM Equity Strategist at Morgan Stanley said.
More than anything else, India needs restoration of the 7 percent to 7.5 percent GDP growth trajectory because we have got almost all our macroeconomic parameters right.
In an interview to CNBC-TV18, Jeff Chowdhry, Senior Portfolio Manager at LGM Investments shared his views and readings on the market and Gujarat election.
One can be comfortable about earnings (growth), but we cannot be sanguine about what is happening externally (global markets), he said.
Globally, the markets are cheering the 25 basis points (bps) rate hike by the Federal Reserve. In an interview with CNBC-TV18, James Sullivan of JPMorgan gave his take on the Fed's move and its impact on global equities.
The US Federal Reserve followed through on an expected interest-rate increase and raised their forecast for economic growth in 2018. The Central Bank has also projected for three hikes in the coming year. In an interview with CNBC-TV18, Shane Oliver, Head - Investment Strategy & Chief Economist at AMP Capital Investors, Seth R Freeman, CEO and Chief Investment Officer at EM Capital Management, Katalin Gingold of Cartica Capital and Mark Matthews of Bank Julius Baer shared their views and readings on the same.
Unless we have a very specific India event, we will follow the world, sometimes outperforming, sometimes underperforming, said Samir Arora, Founder, Helios Capital.
Ahead of the outcome of the Federal Reserve's policy meet tonight, Geoffrey Dennis, Head-Global Emerging Market Strategy at UBS shared his expectations. Another rate hike from the Fed may or may not happen, I don’t think it will have a major negative impact on equity markets worldwide, he said.
According to Geoff Lewis, Global Strategist, Capital Markets Group of Manulife Asset Management, the Fed is gradually raising interest rates and has given more attention now to financial stability rather than just the inflation numbers.
For now, most economists expect the government to focus on job creation through infrastructure projects and other fiscal spending avenues.
Nomura is overweight on financials, energy, infra/construction and healthcare while underweight sectors include IT, consumer staples, utilities & cement.
Mobius highlights that a lot of changes have been brought in by internet and technology. This is having a big impact on companies in India, and that has worked for Indian market
But he does not see a capex recovery immediately. It could begin in 2019 and we are still 18-24 months away from that, he said.
The global markets are severely under pressure. In an interview to CNBC-TV18, Ken Peng, Asia Pacific Investment Strategist at Citi Private Bank shared his views and readings on the markets.
In an interview to CNBC-TV18, Geoff Lewis, Global Strategist-Capital Markets Group of Manulife Asset Management shared his views and readings on the Republican Tax Bill.
One of the things that we saw which was slightly disappointing in the GDP numbers was that domestic consumption is showing signs of continuing to slowdown, Arvind Sanger, Managing Partner at Geosphere Capital Management said.
We are essentially looking at more domestic opportunities which in some sense are the branded consumer generics pharmaceutical companies like FMCG product-like but nature being basically pharma, said Ayaz Motiwala, Senior Fund Manager, Nivalis Partners.
“I do not believe that it will be a continuous very hawkish stance from the Central Bank as of now,” Ben Bei of CIMB Securities said.
India has a very clear reform agenda to address long-standing issues, particularly around infrastructure spending, he said.
“I think the large part of India’s growth is structural. We are in a medium-term growth slowdown,” Amit Bhartia of GMO Emerging Domestic Opportunities Fund said.
Telecom is the only sector where we have the negative outlook and it is predicated on our expectation that competition will continue and that will likely pressure revenues and profitability and that is likely to continue over the next twelve months, Kaustubh Chaubal, Vice President, Corporate Finance Group at Moody's Investors Service said.
CLSA said GST benefits are moderately visible through early signs but improvements in capex activity are not expected just as yet.
On telecom space he is negative as well, adding that he will look to short PSU banks going forward.
On a sectoral basis, he is very positive on the telecom space. He highlighted that telecom had very high RoC 10 years ago but was unsustainable.
The government reforms, the growth potential and the macro stability are a big positives for the economy going forward, said Upasana Chachra, India Economist at Macquarie Capital Securities.