Barring the moves in March series, 2018 for the market is one that it could choose to forget. This especially after the Street had the fantastic run it had in 2017, backed by domestic flows and an all-round bullishness in the market.
At the end of February series on the Nifty, the Street had taken a hit of around 6 percent so far in 2018. Though March series began strong, a phase of consolidation has been visible in the last two days.
However, Kenneth Andrade, Founder and CEO, Old Bridge Capital Management believes the current correction is just a response to weakness in the global markets. In fact, the current situation in the market is a fine opportunity, he believes. “The Street is giving you the opportunity to invest money now. 2018 is going to be the year to build a portfolio,” Andrade told CNBC-TV18 in an interview.
Speaking on sectors, he said banks are facing headwinds currently in terms of asset quality issues, rising yields, and credit growth. Moreover, interest rate cycle is currently in favour of financials. “But one needs to see how fast NBFCs can re-price loans as rate cycle turns up.” He also asks investors to watch out on delinquencies rising as NBFCs reprice loans higher.
Among other sectors, consumption, manufacturing and metals are not in a recession phase, he said.
On the earnings front, he is upbeat about the prospects in 2020. “Balancesheets will be at their best in 2020 and the clean up so far has been very stark, he added.
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