In an interview with CNBC-TV18, Nitin Rakesh, CEO, Motilal Oswal Asset Management Company, gives his views on the market reaction to the rate hikes and makes his top picks.
He says that India has been behind the curve in controlling inflation compared with other emerging economies. Also, we have been more reactive in nature then pro-active, given the fact that the RBI moves continue to surprise us every time. The market has however managed to keep its ground at 5450-5500 and Rakesh does not see it being challenged anytime soon. Do watch out for global cues and how the liquidity issues and the monsoons pan out, he advices. The elections are not likely to have a significant impact on the markets, but the push for decisions that are pending at the Central level post-election could create momentum, he says. Below is the verbatim transcript. Also watch the accompanying video. Q: What have you made of this kind of interest rate hikes, SBI, HDFC Bank, the big banks? Do you think it affects or harms the earnings picture two quarters down the line in any significant manner? A: This is a kind of reaction to the 50 basis point hike by the RBI last week and, also keeping in mind that they are anticipating another 50 basis points for the rest of the year. Rather than keep reacting to the RBI moves, I think, larger banks like SBI and HDFC have taken a stand that saysDiscover 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!
