homemarket NewsTax provisions in budget affecting sentiments, says Neelotpal Sahai of HSBC Global Asset Management
Tax provisions in budget affecting sentiments, says Neelotpal Sahai of HSBC Global Asset Management
The past six months have witnessed a massive price correction in the market as the slowdown in consumption is affecting sentiments, says Neelotpal Sahai, Head of Equities and Fund Manager at HSBC Global Asset Management.
The past six months have witnessed a massive price correction in the market as the slowdown in consumption is affecting sentiments, says Neelotpal Sahai, Head of Equities and Fund Manager at HSBC Global Asset Management.
In an interview with CNBC-TV18, Sahai said: "We have been seeing price correction in the broader market for more than a year and a half now. However, it is now visible in the narrow market, especially in the other half of Nifty. So, in the near term, there could be more reasons which have got to do with the sentiments related to consumption slowdown."
According to Sahai, it might have started with the NBFC liquidity-driven slowdown which was impacting sentiments. "Recently, the expectations from the budget might have been high, and it did not meet some of the expectations. The tax provisions might not have gone down well with a certain class of investors. So, that might be impacting the near-term sentiment," he said.
"What is important from the perspective of an investor is to keep an eye on the fundamentals, which we believe were improving for a couple of quarters. In this quarter, as the results are panning out and because of the consumption slowdown, the earnings growth might moderate a bit. Yet, the expectation for the full year, especially for the large-cap earnings growth, is still intact in high teen kind of thing. So, we are positive on the market from a medium- to
long-term perspective," he added.
Sahai says there is a possibility of making money in sectors where there is consolidation such as organised real estate. "Within real estate, commercial real estate is probably doing better than the residential segment. So, those stocks with a higher share of commercial realty are in a much better shape at this point of time," he added.
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First Published: Jul 31, 2019 5:05 PM IST
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