India's Sensex jumped more than 500 points in early morning trades on Friday, following a rout in the previous session, as a global selloff showed some signs of abating in Asia.
CNCB-TV18 spoke to Tushar Pradhan, CIO-India at HSBC Global AMC, about the recovery in domestic stocks and outlook.
"The Indian markets are always to going give us something to think about, so it is difficult to say whether worst is over for the market or not, but one needs to focus on factual data and other is sentiment, both local and external," said Pradhan.
Talking about the earnings season that kicked off with in-line TCS results on Thursday, Pradhan, "One has already seen bad news both from the external as well as domestic but earnings could be the silver lining. So, one cannot say if the worst is over but a lot of the bad stuff is over."
When asked about the chaos in NBFCs space, he said, "One cannot take a generic call on all the companies because each of the companies have a different market and their ability to raise capital to service that market is also different."
"Companies which can show robust growth and are ring-fenced from these large macro moves – like companies that finance consumer discretionary items, it is matter of changing the capital structure, these companies will do well," said Pradhan.
With regards to the IT sector that saw some selling pressure today, he said, "There is a fundamental case to invest and other is a valuation case to invest. In past most investment decisions were taken on growth but after the correction, the investment universe is looking attractive from a valuation perspective".
According to Pradhan, "The IT space looks attractive for 2-3 reasons. One, is that GDP Growth in US is very strong, cash rich companies in US are looking to deploy money into investing into IT infrastructure. All this give confidence that the momentum for the sector will continue. The tailwind to the current earnings of IT companies is weaker rupee, so going forward there are reasons for earnings upgrades."
Have you signed up for Primo, our daily newsletter? It has all the stories and data on the market, business, economy and tech that you need to know.
Check out our in-depth Market Coverage, Business News & get real-time Stock Market Updates on CNBC-TV18. Also, Watch our channels CNBC-TV18, CNBC Awaaz and CNBC Bajar Live on-the-go!
