With December at the doors, Binay Chandgothia of Principal Global Investor says the traditionally 'strong' month is most likely to bring a year-end rally. "The market is deeply oversold, so, if you get the global macro scene right as in some decent policy announcements out of Europe in the second week of December, the market could jump up," he expects.
In an interview to CNBC-TV18, Chandgothia says the market is going to remain influenced by these macro headlines on Europe, and even the US. However, he added that the European concern has no easy solutions, and constructive steps will come only as a long-term process. Below is an edited transcript of Binay Chandgothia's interview to CNBC-TV18. Also watch the accompanying video. Q: The immediate cause for most investors seems to be whether the year end rally is coming, especially, considering how oversold markets got. Where do you stand on that? A: There is a possibility of the year end rally. December tends to be a strong month, market is deeply oversold. The fund flows are significantly in favour of bonds at the expense of equities. So, if you get the global macro scene right as in some decent policy announcements out of Europe in the second week of December, the market could jump up. They could go back to levels that we were at the end of October. Q: European Finance Ministers and leaders have not been able to yield anything positive. Lot of traders would be wondering whether itDiscover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
