homevideos Newsmarket Newsstocks NewsStrong recovery in India’s GDP highly likely, says Mirae’s Rahul Chadha
Strong recovery in India’s GDP highly likely, says Mirae’s Rahul Chadha
A strong recovery in the gross domestic product (GDP) of India is highly likely with the economy picking up the pace, said Rahul Chadha, CIO at Mirae Asset Global Investments. Chadha's comments come even as several sectors continue to struggle due to the effects of the coronavirus-induced lockdown.
Chadha, however, says the Indian economy is in the early stages of recovery. "I would not look at valuations because historically if we look at last 4-5 recoveries over the last 25-30 years, 70 percent of money-making happens from valuation rerating and the next leg is when the earnings come through which is the year after," he added in an interview with CNBC-TV18.
He continues to remain constructive on the Indian market and added that after the recent rally, the market could consolidate a bit.
Speaking about investments, Chadha said that he prefers buying large banks over NBFCs. He added that the 2-wheeler space could benefit in the post COVID world.
According to him, auto stocks are not very cheap but earnings momentum can pick up hereon.
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