PSU banks have seen huge rerating, which tells you that valuations have factored in some amount of NPA resolution, said V Srivatsa of UTI MF.
In an interview to CNBC-TV18, V Srivatsa, EVP & Fund Manager at UTI MF shared his readings and outlook on specific stocks and sectors.
V Srivatsa, Executive VP & Fund Manager, UTI MF believes the government should have gone the ETF way instead of stake sale of PSUs to reduce the impact on stock prices.
Pharma looks good from a valuation perspective and so the house is increasing its exposure to the space, said Ajay Tyagi of UTI Mutual Fund.
"We are not expecting any action on the rates from RBI, but there is a very strong case for RBI to at least address excess liquidity in the system", Amandeep Chopra, Group President and Head of Fixed Income at UTI MF told CNBC-TV18.
The tyre industry is getting disciplined and we see structural growth ahead over 3-5 years, said V Srivatsa of UTI MF.
Market in yesterday‘s trade rallied owing to the gains from healthcare stocks. Swati Kulkarni of UTI MF said that pharma companies are going through the remediation process and after they US FDA approvals, the pharma stocks will perform well.
Speaking to CNBC-TV18 he said that in the coming quarters there will be revival in the pharmaceutical sector and the pent up demand due to demonetisation is likely to play its part in the automobile space.
Given the type of competition now, specially on the data front, it is quite clear that players with stretched balance sheets will have problem if this continues for a while, says Swati Kulkarni, of UTI MF on the Indian telecom industry.
It is going to be a volatile year and in the near term we are keeping an eye out for the Union Budget, Trump policies and the impact of Brexit. But India's macro fundamentals continue to look good, says Lalit Nambiar Fund Manager and Head of Research at UTI MF
The Budget is going to be the biggest market trigger for the next 3-6 months, says V Srivatsa, EVP and Fund Manager at UTI MF.
Analyst believe that destination tax, if it goes through in US then it will impact many emerging markets significantly. On the other hand, Ajay Tyagi of UTI MF says India will be relatively less impacted because 70 percent of the country's GDP is domestic consumption.
Today's expected trading range for the 10-year benchmark yield would be 6.4-6.5 percent, says Amandeep Chopra, UTI MF.
Due to the cash crunch the recovery in earnings is likely to get postponed to FY18 and uncertainty is likely to cloud the domestic potential in the near term, says Swati Kulkarni, Executive Vice President and Fund Manager of UTI MF.
Speaking to CNBC-TV18 Lalit Nambiar of UTI MF said that he is sticking with his portfolio. The broad thrust won‘t change because of what has happened, he said, referring to the demonetisation drive.
The Reserve Bank of India (RBI) hiked the cash reserve ratio (CRR), the percentage of cash deposits that banks have to maintain with RBI â€“ at 100% of the deposits (NDTL) accrued between September 16 and November 11 as incremental cash reserve ratio.
As global volatility continues on account of factors such as US Presidential elections, Swati Kulkarni of UTI MF says any correction can be used as a good entry point by investors.
Speaking to CNBC-TV18, Lalit Nambiar of UTI MF said that India continues to stand out amongst the Asian pack on back of strong growth momentum.
RBI will target neutral liquidity through combination of OMOs and forex intervention, said Amandeep Chopra, Group President & Head of Fixed Income, UTI MF.
Although one cannot totally rule out rate cut by the RBI in the upcoming meet on Ocotber 4, the odds are in favour of rate cut in later, said Swati Kulkarni, Exec VP & Fund Manager, UTI MF.
Tough to put a timeline for new highs on Nifty but right now market is breathing a sigh of relief from the fact that US Federal Reserve kept rates unchanged, says Lalit Nambiar, Fund Manager and Head of Research at UTI MF.
The Jalandhar-based company aims to raise maximum Rs 130 crore through public issue. Of which, it already raised Rs 37.88 crore from three mutual fund houses under its anchor investors portion on September 12.
According to V Srivatsa of UTI MF, cement companies will see volume growth in FY17 and earnings of the banking space will recover going forward.
The effects of an economic recovery will start showing in small domestic-facing companies well before large companies, says Lalit Nambiar, Fund Manager at UTI MF.
Investors have taken comfort from the government's focus on inflation. The long-term yields have come off, said Amandeep Chopra of UTI MF, adding that the theme has to be sustained for a longer time.