With the earning season around the corner, everyone is waiting to see if the results will further boost the market or pose a hurdle. Ridham Desai, Managing Director of Morgan Stanley believes that this earning season will be widely dispersed.
"This remains a stock-picker's market, underpinned by the earnings dispersion that we are seeing. A great time for fund managers to pick alpha," he told CNBC-TV18 in an exclusive interview.
"The risk reward ratio for some sectors which are trading at attractive valuations or at low valuations is good for investors with a 12-month horizon. We are willing to take a little bit more risk. But this is more of a stock-specific market rather than sector-driven. So you have to make your stock picks even within these sectors," he said adding that he is more bullish on consumer discretionary stocks.
Talking about the Mining Bill, Desai said, its impact will be mixed. "Some will be able to pass it on; others will need to absorb it. It will be negative for the sector on margin." But he believes it to be a good sign to see the government taking action on pending issues. Below is a verbatim transcript of his interview with CNBC-TV18
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