Speaking to CNBC-TV18 Nilesh Shetty of Quantum AMC said that the long-term structural story isn‘t damaged, but the near-term outlook looks a bit shaky. There will be impact on GDP growth, he said, from demonetization. The next 12 months are going to be tough for equities, he said.
Speaking to CNBC-TV18 Nilesh Shetty of Quantum AMC said that the forecast for the second half of the fiscal year has always been positive. However reality has always proved it wrong.
If the market continues to rally without earnings moving higher then Quantum AMC will be forced to sell out and cash levels in the fund could inch up further, says Fund Manager Nilesh Shetty.
Corporate earnings are set to revive on a combination of good monsoon, falling interest rates and salary hikes for government employees. Yet, they may not be good enough to justify the expensive valuations that most stocks are quoting at, feels Nilesh Shetty, equity fund manager, Quantum Mutual Fund.
In comparison, fund managers had pumped in Rs 81,634 crore in the banking shares in August last year.
Most of the expectations of a good monsoon driving rural demand and in effect earnings has been priced in feels Nilesh Shetty of Quantum AMC who prefers to raise cash levels by trimming stock positions if the market continues to rally.
Quantum AMC is one of the few asset managers in the country that actively takes cash calls on the basis of how comfortable fund managers are with stock valuations
Watch the interview of Nilesh Shetty, Associate Fund Manager-Equity at Quantum AMC with Ekta Batra & Anuj Singhal on CNBC-TV18, in which he shared his readings and outlook on specific sectors.
Jai Bala of 1857 says it may be a good idea to hold on to winners such as Cipla, Ceat and Bosch rather than search for new ones. He is also positive on the telecom (Bharti Airtel, Idea Cellular) and auto space.
Devang Mehta, Anand Rathi Financial Services clearly believes market is giving an opportunity to accumulate because most of the global uncertainties like Greece crisis, Chinese market seem to be discounted an market is now looking forward to new trajectory of earnings, parliament‘s monsoon session.
Industry insiders believe that MFs would continue to attract medium-to-long term money into equities even as the markets have turned volatile in the past few weeks.
This is slightly lower in comparison to Rs 1.46 lakh crore net inflows witnessed in the first two months of the 2014-15 fiscal. According to the latest data available with Association of Mutual Funds in India (Amfi), investors put in a net Rs 1.12 lakh crore in MF schemes in April and May.
Nilesh Shetty, Associate Fund Manager-Equity, Quantum AMC, continues to remain fairly cautious on markets.
The disconnect between corporate India and stock market is more evident now which is why this correction will get ferocious in days to come, says Nilesh Shetty, Associate Equity Fund Manager at Quantum AMC.
Financials are unlikely to outperform from current levels. So, the house has reduced its allocation into financials and are in a wait and watch mode, said Nilesh Shetty of Quantum AMC.
Quantum Long Term Equity Fund belongs to Diversified Equity category which predominately seeks to appreciate capital by investing in shares of large and mid-cap companies belonging to BSE 200 Index. This fund has remained true to its stated objective and can form an integral part of investor‘s portfolio, reckons Arnav Pandya.