From the sideline of Axis Capital 11th Annual India Conference India 2020 Stars, CNBC-TV18 spoke to Dharmesh A Mehta, Managing Director & CEO, Kashyap Pujara, Executive Director, Head of Research -Institutional Equity Research and S Subramanian, Managing Director & Head of Institutional Equities of Axis Capital not only about their 2020 stars but also about one year of demonetisation.
CNBC-TV18 also spoke to Chirag Negandhi, Managing Director, Investment Banking and Ashish Nigam, Deputy Head- Research of Axis Capital.
Mehta said stock markets were the biggest beneficiary of demonetisation. It was shock to the system but no complaints, a great move for the long-term.
Subramanian said demonetisation and another key catalyst GST helped economy move from unorganised to organised sector. Besides helping equity markets, the broader economy has also seen immediate tangible benefits like lower cost of funds.
Demonetisation besides aiding financialisation of savings and pouring money into banking system also aided the larger, clean real estate companies. So, Demo along with new reforms like GST and RERA has set the boys away from the men in real estate sector. said Pujara.
From market perspective, Mehta said India has been part of the global rally. Meanwhile, lower oil prices also helped the Indian economy. However, going forward situation could be grim for global markets with oil prices moving up, geopolitical issues, interest rates likely to go up, so India needs to brace for some volatility.
However, technically, India is in a safe zone because about 50 percent of the index consists of banks, where worst seems to be over, RIL and autos is doing well, said Mehta. Therefore, it is unlikley that we may see a catastrophic fall for the Indian markets as such, said Mehta adding that any correction may give an opportunity for investors to enter into the market.
Experts also discussed PSU bank recapitalisation, IPOs, outlook for IT, pharma, autos companies etc.
Talking about the theme for the conference, Subramanian said it is not going to be a thematic-based conference, there are companies participating across the board -- about 80 plus and about 500 investor participation.
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