Atul Suri, CEO of Marathon Trends-PMS believes the Union Budget 2021 has given further steam to Indian market’s upmove and the near-term base for the Nifty is at 13,500.
“This is what we saw in the last two days, prior to the budget we had five-six days of negative FII flows lot of people thought it is over but post the budget, you didn’t get a chance. Once the budget comes, you want to examine the fineprint, you want to read, by the time you did that, the whole fall or the whole benefit of the fall was gone,” he mentioned.
“Typically in a bull market the correction tends to be very laborious, painful, makes people very doubtful and when they pull up, they pull up so fast that if you are in doubt, you don’t get a chance to re-enter,” he said.
He is seeing decadal shifts happening in the market.
“The biggest dogs for almost a decade were real estate, public sector undertaking (PSU) banks and metals. If you look at the sectoral performance in the last three months, these are by far the best performing sectors. So what you are seeing is a decadal shift that is happening even internally. That is something which keeps me thinking,” he said.
According to him, when a sector or a theme has not performed for a decade, everyone will be underinvested there. “In case this decadal trend is changing, these things when they change, they don’t change for a few months or years but for many years. That is going to be the key right now,” Suri mentioned.
Corporate earnings have been positively surprising, he said. “This is the first time after two years where you are coming and you are showing that things are getting upgraded and most or many companies are surpassing estimates."
He feels at the moment the emerging market (EM) basket is a little extended.
“As far as Indian markets are concerned, everyone has been doubting this rally, but now post-budget the doubts are turning into acceptance. That goes for the EM trend and that goes for the Indian market also,” he said.
For full interview, watch the video