Non-financial Nifty growth would remain in single-digit for FY20, said UBS Securities' Gautam Chhaochharia.
Gautam Chhaochharia, Managing Director and head of India research at UBS Securities, spoke to CNBC-TV18 about the current trends in the equities market, earnings and his expectations from the interim Budget.
"It looks like a tale of two markets, at the index level, it looks like the market is still in a bull market zone but it does not feel like that on the broad market," Chhaochharia said on January 22.
"While fundamentals or worries around policy is becoming an overhang but continuous inflows of money through retail mutual funds is making the fund managers deploy into specific index stocks," he said.
On the earnings front, Chhaochharia said, "FY20 will see return back to double-digit earnings growth at around 16 percent for Nifty largely driven by the financials normalizing from NPL cycle, said Chhaochharia. However, non-financial Nifty growth would remain in single-digit for FY20."
"Even the 16 percent growth forecast for FY20 would mean roughly a 9 percent cut to estimates which street has. So earnings momentum in terms of revisions will not be supportive of market," he said.CNBC-TV18