homemarket Newsstocks NewsFinancials to drive market, aviation to see massive capacity expansion, says Old Bridge Capital

Financials to drive market, aviation to see massive capacity expansion, says Old Bridge Capital

Large-cap shares and among them shares of financial services comapnies are expected to drive the market this year, said Kenneth Andrade, founder and CEO of Old Bridge Capital Management.

By Anuj Singhal   | Latha Venkatesh   | Sonia Shenoy  Apr 18, 2019 10:55:53 AM IST (Published)

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Large-cap shares and among them shares of financial services companies are expected to drive the market this year, said Kenneth Andrade, founder and CEO of Old Bridge Capital Management. The year 2019 will be the best for the financials after a long period of time, he added in an interview with CNBC-TV18.
Talking about Nifty earnings, he said the state of the balance sheet has been a consolidated rather than an expansionary phase over a decade now. "However, we did have massive expansion in 2008 to 2012-13 but post that it has been consolidation."
“So the system went from an undersupply position in 2006-07-08, then huge amount of capex came up and all that capex is sitting on ground under utilised,” he said, adding that today we are close to 73 percent of utilisation on ground and this has to exhaust itself for us to go to the next capex cycle.