The market would most likely rebound with vigour in February-March post clarity on Budget and earnings outlook, said Sunil Subramaniam, CEO, Sundaram Mutual.
Sunil Subramaniam, CEO, Sundaram Mutual is of the view markets will remain volatile for another month or so.
Market valuation according to him got affected due to uncertainties arising out of Brexit, US elections and demonetisation. The Sensex returns too in terms of EPS growth were flat.
There is also uncertainty in terms of what the earnings going forward would be and what the Union Budget would bring about, so domestic institutional investors (DIIS) are waiting on the sidelines but once there is further clarity on all these, the market will most likely rebound with vigour in February-March.
With regards to FIIs, he does not see them returning quickly in January and they too would be waiting for clarity on above factors.
Sectors like commodities, energy, banking that were dragging this year would do better next year. Banking was the only sector to benefit from demonetisation because it helped improve their CASA and loan repayments too.
For the full interview, watch video..