Sridhar Sivaram, investment director of Enam Holdings, is of the view that there is a catch-up trade for Indian markets as most emerging markets have rallied by 13-14 percent year-to-date but India hasn't participated to that extent.
"Across the board, most markets are up 10-12 percent, barring a few. So I think there is catch-up trade for India. Going forward, expect India to participate far better than it has done so far and so remain positive on the market," Sivaram told CNBC-TV18.
"We think the global environment is conducive for emerging markets in general and India would participate eventually," said Sivaram.
Sivaram expects broader markets to outperform this year.
On the earnings front, he said: "They are expected to be mixed for the fourth quarter. Financials may show better results because of reduced credit costs."
"Earnings seem broadly priced-in, don’t see too many surprises. Moreover, since many stocks have corrected, the risk-reward is better right now, he added. It pays of buying good companies when cyclical they are at a low," said Sivaram.
"I will be surprised if we do not get aggregate basis 17-18 percent earnings for FY20 and financials will dominate that," he said.
Source: CNBC-TV18
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