It is a good consolidation which the market needed. It is a reminder to people that it is not a one-way street and many investors which joined equity markets in the last three years haven’t seen at all.
Sridhar Sivaram of Enam Holdings sees positive impact from interest rate transmission on earnings. He likes infrastructure, construction and capital goods and believes that the market will continue to climb wall of worry
"The problem in the economy is that our consumption is very weak and investment cycle is not taking off. So I was expecting giving more money in the hands of people," says Sridhar Sivaram, Investment Director, Enam Holding.
In a relief for the foreign investors, the tax department has put on hold its recent directive on taxation on indirect transfers.
Speaking to CNBC-TV18 Sridhar Sivaram, Investment Director AT Enam Holdings, said that the CBDT circular regarding tax norms for FIIs is absurd.
Demonetisation will be positive for medium to long-term. However, in the short term the impact can be seen on daily wagers who probably are getting shifted to the brink of below poverty line, says Sridhar Sivaram, investment director at Enam Holdings.
While the current market is driven by liquidity, it will not last forever and earnings will have to improve for growth, Sridhar Sivaram, Investment Director at Enam Holdings told CNBC-TV18.
Whether the market can continue to rally from hereon will depend on earnings growth and right now the feelers are not that great, says Sridhar Sivaram, investment director at Enam Holdings
Sridhar Sivaram, investment director at Enam Holdings believes it is time to protect capital, not even to bottom-fish, as domestic earnings are not improving while there are strong global headwinds.
According to Sridhar, there has been better clarity on policy over the last year. On the flip side, he feels the government is too focussed on fiscal deficit, and instead should be doing more to boost consumption
Watch an interview of Dharmesh Mehta, MD & CEO of Axis Capital and Sridhar Sivaram with Latha Venkatesh and Sonia Shenoy of CNBC-TV18. They gave a deep analysis and discussed the intricacies of what can happen over the next six hours.
Experts discuss the current investment scenario in India. In addition, they advise investors in terms of how to counter a current market like the one we are seeing today.
Sridhar Sivaram, MD, Morgan Stanley Investment Management explains on CNBC-TV18 that the 25-bps rate-cut by RBI was a welcome move and that the market expects 75-100 bps in repo cuts for rest of the current year of 2013.
Morgan Stanley Investment Management is a bit cautious on the IT sector. "We are currently underweight the IT sector. If you see the result of the last quarter, of all the large majors, it wasn’t very encouraging, 1-3% of growth. Guidance for the current quarter is also not very encouraging," says the managing director Sridhar Sivaram.
The market has had a good run of late, but Sridhar Sivaram, managing director at Morgan Stanley Investment Management, is still circumspect about whether the worst is over.
It was a tough session for the markets and a disappointing close to the week. Experts don’t see sharp fall in the Indian markets and say that the downside is capped.
Adverse global cues have been pulling Indian equities towards consolidation. In fact, according to Sridhar Sivaram, ED at Morgan Stanley Investment Managers, the market is already in consolidation phase.