For the Indian equity market in the short-term the risk is to the downside, at least over the next 2-3 months and March will likely be more painful, is the word coming in from market veteran Andrew Holland, CEO, Avendus Capital Alternate Strategies.
In short term there are headwinds which the market is ignoring at the moment, so expect volatility across all markets, he said.
Overall, the market will move in-line with earnings and for 2018-19 the earnings are expected to be around 15 percent.
When asked which sectors would look at in current situation, he said IT, FMCG and private banks to some extent look good. However, he is not upbeat on pharma yet.
With regards to PSU banks, he said the private banks and NBFCs will take over the market share from PSUs and the PSUs will be saddled with poor cash flow companies. This could lead to higher rates because of the scramble for working capital, said Holland.
Global factors along with local factors will keep markets on tenterhooks, he said.For the full discussion, watch video