Economy unlikely to recover before the housing sector revival: CLSA

Foreign brokerage CLSA on Thursday said that county's economy is unlikely to recover before the housing sector revival.

In a special conversation with CNBC-TV18's Areeb Sherwani, Mahesh Nandurkar, India Strategist, said, "The worst may be over where financials are concerned. There will be some incremental non-performing loans (NPLs) kind of coming through, but I still do not think that the gross NPL ratio as a percentage of outstanding credit will be rising. In fact, it should be falling from here on."

Speaking about the market, he said, “Over the last 5-7 years, we have seen only one investment style which has worked, which is just sticking with quality and just ignore the value wherever there are some question marks and you will end up making money. No red flags at any price has been the strategy so far which has worked. If you look at the market movement over the last couple of months, there seems to be some change in that thinking and we have seen the market leadership undergoing some small change for the last couple of months."