In a recent interview to CNBC-TV18, market gurus Ramesh Damani, Ridham Desai and Vibhav Kapoor spoke on a range of subjects including Fed Policy, India's growth and government action and its impact on economy.
Speaking on the sidelines of the ATMA Conclave, Ramesh Damani, Member, BSE, says that Fed rate hike is a big worry for all asset class but the hike will take some time to come.
Says Damani: “The thing that worries all asset classes across the world now is the question, when is the Fed going to raise rates? Because, that will ultimately affect all asset classes. Given the fact that there is negative interest rates in Europe, I don't think the Fed is going to start raising interest rates in America. They will maybe pass even September-December. They are mortally scared of raising interest rates."
Ridham Desai, MD, Morgan Stanley and a panelist at the conclave, expects growth to pick up in next three months. Says Desai: “A lot of the lead indicators to headline economic growth have actually already turned in the last two months. If the government spending picks up, which is what I think will happen in the first quarter, we will start seeing it translate into corporate earnings growth. I think 18-20 percent growth is pretty reasonable. The index earnings could actually be higher so it basically means the market which is currently at 18 times earnings is trading at 15 times."
Vibhav Kapoor, IL&FS, another powerful market voice participating in the conclave says the hype and buildup seen during pre-election was based on the fact that India will radically change in the short time. He thinks one-year is too short to see meaningful change. The government is trying hard and it will take three to four years for any visible change to occur, he said.
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