Mar 13, 2018 05:30 PM IST | Source: CNBC-TV18

Volatility is here to stay; see FY19 earnings growth in mid-teens: Expert

volatility is going to be the name of the game and for the next one year market will be difficult to navigate, said Shibani Sircar Kurian, VP & Head-Equity Research, Kotak AMC

CNBC TV18 @moneycontrolcom

It was a flat close to a volatile day of trade on Dalal Street. The 30-share BSE Sensex failed to hold 34,000 levels, closing down 61.16 points at 33,856.78 while the Nifty managed to settled trade above 10,400 levels, rising 5.50 points to 10,426.90.

In an interview with CNBC-TV18 market experts SP Tulsian of, Ashwani Gujral of, Prakash Gaba of, Anand Tandon, Karan Taurani, VP-Research, Dolat Capital, Ambareesh Baliga and Shibani Sircar Kurian VP & Head-Equity Research Kotak AMC shared their views on the outlook for the market and specific stocks/sectors.

Kurian is of the view that volatility is going to be the name of the game and for the next one year market will be difficult to navigate. However, structural uptrend remains intact.

According to her, there are two contradictory trends that are playing out. One, the micros in terms of growth, corporate earnings and others look are in an upward trajectory. However, the macros in terms of current account deficit has become wider and one will have to keep an eye on how this is going to be funded. Moreover, this being an election year, one will also have to keep a watch on fiscal deficit. Also with stress in the banking system, will adequate credit be available, is a question.

We are currently in a challenging and interesting times, she said.

With regards to earnings, Kurian said the hope is that uptick seen in Q3 continues in Q4 and that sets the base for earnings expectation for FY19. She said they are looking at mid-teens kind of earnings growth for FY19 driven by domestic consumption oriented sectors. However, for the banking sector he volatility in earnings could be very significant, she said.

For the entire discussion, watch video
Follow us on
Available On