Moneycontrol
Last Updated : Mar 09, 2018 11:37 AM IST | Source: CNBC-TV18

Fear that more skeletons could come out of closet in banking sector: Vikas Gattani

Vikas Gattani, Founder & CEO of Progress India Opportunities Fund manages about a hundred million dollars and has previously worked with JPMorgan, Merrill Lynch and UBS. In an interview with CNBC-TV18, Gattani spoke about his reading of the market and his outlook.

CNBC TV18 @moneycontrolcom

Vikas Gattani, Founder & CEO of Progress India Opportunities Fund manages about a hundred million dollars and has previously worked with JPMorgan, Merrill Lynch and UBS. In an interview with CNBC-TV18, Gattani spoke about his reading of the market and his outlook.

Long-term capital gains (LTCG) was a definite negative both from a foreign and domestic investor’s point of view. We expect further selling pressure till the end of month of March, he said.

Interest rates in India have definitely bottomed out and with the rise in inflation and inflation expectations we see that rates in India are also likely to rise and that is not helping the market as well, he added.

While the steps for resolution of stressed assets have been taken and issues have been addressed, there is always a fear that more skeletons may come out of the closet and that is also not helping the sentiment, said Gattani.

According to him, tightening of trade finance by banks could also put a dent in the economic functioning.

Speaking on real estate sector, he said that with proper implementation of goods and services tax (GST) and real estate regulatory authority (RERA), weaker realty players will move out of the system in 12-18 months.

Remain overweight in non-banking financial companies (NBFCs) and looking to add to our positions, he further mentioned.

For more, watch accompanying video…
First Published on Mar 9, 2018 11:28 am
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