Samvat 2076: News triggers to make it interesting for tactical investors, says Udayan Mukherjee

Going ahead, the market will be rangebound in its best-case scenario, and the way to eke out earnings next year will be through higher growth, said CNBC TV18 Consulting Editor Udayan Mukherjee.

“The cut in the corporate tax rate is the reason why we see a 10 percent gain in the market, or else they would have traded flat,” said Mukherjee. Speaking to Moneycontrol Editor Santosh Nair on the scenario for the future, he said, “My base case is a rangebound market between 11,000 to 12,000, with a lot of stock-specific opportunities.”

Speaking about earnings for Q2FY20, Mukherjee said that despite the current economic conditions, good companies are still delivering some growth.

“Companies such as HUL, HDFC Bank, Bajaj Finance, ITC, Asian Paints, these companies are still giving between 10 to 20 percent earnings growth, which in the economic backdrop, are very commendable. You can argue about their valuations, these companies aren’t cheap, but they are still delivering growth, amid this doom and gloom,” said Mukherjee.

He added that the challenge for the next 12 months would be whether to stick to these big names, or remove them from one’s portfolio and go for riskier stocks such as mid-caps and small caps.

Udayan Mukherjee's latest novel 'A Death in the Himalayas: A Neville Wadia Mystery' is out now on Amazon and Flipkart

“I would say, for long-term investors, you still want to keep the good stocks in your portfolio, even if they don’t deliver returns in the last one year, they consolidate gains from last year. For tactical investors, this year might be made more interesting depending on the news triggers that come in.”

Watch the video for more.