"Moreover, if the government spending increases on back of elections, then consumer discretionary space could do well." Holland added.
Andrew Holland, CEO of Avendus Capital Alternate Strategies, is of the view that the US Fed Chairman Powell will be on a pause for at least a quarter or more, giving opportunity to the Reserve Bank of India (RBI) to cut rates.
“So, globally we are going to see interest rates not moving higher and so for RBI here there is a opportunity to reduce interest rates at least by minimum 25 basis points soon,” Holland said on Wednesday.
"Moreover, if the government spending increases on back of elections, then consumer discretionary space could do well."
Holland is more bullish on Indian equities now than have been in a long time. According to him, "If one were to work on the basis that we will have a stable government then private capex will pick up in second half of the year and so earnings could move towards 20 percent growth levels and index could match that in terms of growth."
Holland is not convinced that the US is out of the woods and thinks the economy is headed towards recession. "Moreover, looking at the German Industrial production numbers which was down -1.8 and revised October to – 0.5 and so maybe Germany could go into recession at this rate," said Holland.
"The house remains upbeat on private sector banks and would selectively look at the pharma space," said Holland, adding that HUL is still a great buy and will continue to be so for the rest of the year.Source: CNBC-TV18