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Weekly Dossier: Vikas Khemani, Dipan Mehta, Jonathan Schiessl on trends of market, economy

The Indian equities are in a structural bull market, experts say, and the coming year is expected to augur well for the equities.

December 26, 2020 / 09:12 AM IST
Representative image | Source: Pixabay

Representative image | Source: Pixabay

After Monday's sharp fall, the Indian market resumed its upward journey and logged strong gains during the subsequent three sessions.

The Indian equities are in a structural bull market, experts say, and the coming year is expected to augur well for the equities.

However, that does not mean the rally will be even for all sectors. Sectors like IT and pharma may log bigger gains than the other sectors.

Top market voices express their views on emerging trends in the market, economy and areas of opportunities. Take a look:

Vikas Khemani, Carnelian Capital Advisors (to CNBC-TV18)


We are very convinced about entering the IT sector, manufacturing and real estate. Having said that, many more sectors will also do well.

IT sector looks strong and robust from a profitability growth perspective. BFSI segment – for the next four-five years we are looking for a very strong credit environment as well as the profitability growth environment.

We are seeing a big shift coming from China to India on a manufacturing front. This is a very big structural change that happens post-COVID and that will provide a very big opportunity. Cyclicals are doing very well, the commodity will also do well. Sectors like real estate are coming back.

Rajat Rajgarhia, Motilal Oswal Financial Services (to CNBC-TV18)

The current rally in markets will get broad-based and will continue for some more time. IT stocks are at an all-time high but so are the profits and so are the dividends. So the IT sector would still remain at the top of the pack to bet for in 2021.

Dhananjay Sinha, Systematix Group (to CNBC-TV18)

The economic recovery has been faster than expected and next year should also be buoyant.

Nifty earnings should rebound by at least 30-32 percent year-on-year next year. So there is a good run-up that is going to happen in corporate performance over the next two years or so.

We think that the lending growth this year is going to be surprising on the positive side and that translates into a significant rebound as far as the earnings and operating performance of the banks are concerned. Stocks like ICICI Bank, HDFC Bank, Axis Bank can be outperformers.

Dipan Mehta, Elixir Equities (to CNBC-TV18)

From every angle that I look from at the aviation company (space) - we remain negative and no doubt there is a consolidation and the largest player, InterGlobe Aviation (IndiGo), has gained market share but the overall pie has definitely shrunk.

There are many headwinds as far as Indian aviation is concerned. Not to forget the fact that a large number of planes have been ordered by the existing airlines. So capacities also will move up for the next two-three years or so.

Valuations on paint companies still remain high and one correction is not going to change that. Existing investors can certainly remain invested. Keep these stocks on your watchlist. If you see a steep correction in the market in these stocks, that will be a good entry point but not at current levels.

Jonathan Schiessl, Emerging market strategist (to CNBC-TV18)

The story for equities still looks pretty good for the next six months. It will probably be more of a difficult time in the second half of next year. Markets were overdue a correction but ultimately we are heading higher.

There are less active investors in the markets today and therefore this market can push to extremes on both sides because without active investors or the role of active investors being less today than it was in the past, it can exacerbate the volatility that we are seeing.

Disclaimer: The above report is compiled from information available on public platforms. Moneycontrol advises users to check with certified experts before taking any investment decisions.
Moneycontrol News
first published: Dec 26, 2020 09:12 am
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