Monday Market

Frauds erode trust in banking system & its relevance

Instead of multi-baggers, investors should focus on investing in great businesses in a fast growing industry with dynamic managements and hold them for a longer term, said Tarun Birani, founder and CEO TBNG Capital Advisors, in an interview with Sangeetha G. This will give them a favourable reward-to-risk return, he added. Excerpts:

During the past few days the market has been volatile. How do you see the reaction of the market to the PNB fraud issue?

Budget has not changed long-term picture

While some churn in stocks can be fairly expected before FY19 starts, as investors realign their portfolio, the LTCG pressure on stocks is likely to be limited, said Anand James, chief market strategist at Geojit Financial Services, in an interview with Sangeetha G. But it’s important to note that even with the 10 per cent LTCG, equities’ return so far is still much more attractive than what you might end up with other asset classes like debt, real estate or gold, he added. Excerpts:

How do you rate the budget for 2018-19?

Q2 reflects cyclical improvement in growth & earnings

The market is riding on strong macroeconomic fundamentals and this growth would continue, giving retail investors an opportunity to participate in this growth, says Arun Thukral, MD & CEO, Axis Securities. In an interview to Sangeetha G, Thukral says the pace of NPA revival is critical for the economy’s revival. He also believes Jerome Powell as the US Fed chief will be good for the Indian market.

How do you evaluate the Q2 earnings season?

Earnings recovery could be visible from Q3 onwards

The bullishness among domestic investors regarding the India story is fuelling a shift in the manner of savings. People are opting to save via investments in mutual funds rather than the traditional fixed deposits, said Ajay Kejriwal, president of Choice Broking, in an interview with Ravi Ranjan Prasad. It’s this bullishness that has led to the current market rally, he said. Excerpts:

What’s your take on the government’s steps to boost public sector banks and infrastructure?

FIIs to remain interested as India offers highest real rate of return

Although in the short run the market may remain volatile, but in the longer term Indian capital markets are poised for a consistent higher growth in the decade to come. It could mainly be due to stable economic and political scenario coupled with implementation of business-friendly reforms.

RBI may stand pat on rates at Oct 4 policy meeting

Referring to the recent outflows by foreign institutional investors, Ritesh Jain, chief investment officer, BNP Paribas Mutual Fund, tells Falaknaaz Syed that FIIs maybe, reallocating their capital to other emerging markets, which are cheaper than India, but a possible correction in both currency and equity markets could actually lead to inflows later during the year. Excerpts:

How do you read this quarter’s results? Are there any signs of revival?

Lack of earnings pickup may dampen sentiment

With a decreasing allocation to emerging markets seen in global allocations in August, it appears that there may not be much appetite for Indian equities by FIIs in the interim. In an interview with Falaknaaz Syed, Tushar Pradhan, chief investment officer at HSBC Global Asset Ma­n­a­g­e­ment India, said several domestic negatives such as continued softness in corporate earnings, a longer than expected impact of the disruption caused by GST and a political upheaval can damage the prospects of the ruling party’s efforts to get re-elected in the 2019 polls.

GST’s orderly implementation is important

While the macroeconomic fundamentals of economy have improved dramatically over the last three years, the government of the day needs to take utmost care and caution and keep in mind that incremental delays in resolution of NPA problem would delay private capex recovery and also while there are reasons to be positive about the long-term prospects of GST, it’s important that it gets implemented in an orderly manner with less disturbances to the trade, said Harshad Borawake, head of research (equity) at Mirae Asset Global Investments, a leading independent asset managemen

Equity may yield 15-18% annual returns

The sharp stock rally in recent months has come as a surprise to many, but the market now awaits an event, like improved corporate earnings, for the next big move. Though the corporate earnings growth will be positive, the real momentum in earnings will be seen in the third or fourth quarter of FY18. In the meantime the market can go through a little bit of volatility, said

Ravi Gopalkrishan, head equity, Canara Robeco Mutual Fund, in an interview with Ashwin J Punnen. Excerpts: