Difficult to take a bullish view on market in the near term: Jefferies
In an interview with CNBC-TV18, Mahesh Nandurkar, India Strategist at Jefferies said that it is difficult to take a bullish view on the market in the near-term as there are still several challenges that need to be addressed before the market can fully recover.
While there are certainly challenges ahead, in the Indian equity market, there are also opportunities for investors who are willing to take a long-term view and navigate the market carefully.
In an interview with CNBC-TV18, Mahesh Nandurkar, India Strategist at Jefferies said that it is difficult to take a bullish view on the market in the near-term as there are still several challenges that need to be addressed before the market can fully recover. He also discussed several topics including the state level budgets, sectors that are seeing traction and his outlook on the market.
He said, “From a near term, it is very difficult to take bullish view because we know what is happening globally. We have seen pressures in the US and European banking system, but it was heartening to see that the regulators, government agencies swung into action swiftly and contain the damages from the likes of SVPs and the European banking crisis.”
Talking about state level budgets, he said that it has started showing a tilt towards populism. This means that state governments are focusing more on social welfare programs and other initiatives that are aimed at pleasing the masses. While this may be good for the people, it could also have a negative impact on the economy in the long run.
Nandurkar also mentioned that sectors like construction are seeing traction and could lead to rural recovery. This is good news for India, as the rural economy has been struggling for some time now.
Despite this caution, he believes that this is probably going to be a year where dips should be bought. In other words, investors should take advantage of any market downturns and use them as opportunities to buy low and sell high.
On sector front, Nandurkar prefers IT and pharma and believes that these sectors are the best bets for investors looking for stable returns. This is good news for those who are invested in these sectors or are considering doing so.
According to him, both domestic and foreign investors expect continued political stability in India. This is a positive sign for the market, as stability is often seen as a key factor in driving economic growth. However, he also pointed out that there is a difference between state and national level elections. Investors should be aware of this and take it into account when making investment decisions.
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