Quantum AMC Chief Investment Officer Chirag Mehta is positive about the recovery being seen in the Indian economy, which, he says, should support earnings for the next two to three years.
The revival in real estate, pick up in IT hiring, improved credit growth and robust tax collections are the factors powering this cyclical recovery, he says.
Mehta, who has 19 years of experience in the financial markets, manages four funds largely in the field of alternative investments that include a gold fund, a multi-asset fund and an equity fund of funds.
He expects the RBI to go for “a 25-35 basis point rate hike with a divided Monetary Policy Committee" this week. In an interview to Moneycontrol, Mehta says going into next year, there is a strong case for the central bank to pause and recalibrate the monetary policy. Edited excerpts: