Here is what market gurus and industry captains said about the near-term trajectory on December 17, 2020.
There will be no recession, no double-digit recession as we are seeing in Europe. However, we do expect to see the economy continuing to lose some momentum. He believes Fed disappointed some who expected more intervention, more purchases of government and mortgage-backed securities along with extending the maturity of their purchases to try to keep a lid on longer-term interest rates. They also disappointed those who were expecting a bit more details on the outlook. At the end of the day, the Fed’s announcement will be viewed as dovish. They didn’t give the market exactly what they are looking for but they also said that they will continue doing what they are doing until there is substantial progress on economic growth and inflation. Watch here.
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Gary Schlossberg, Global Strategist, Wells Fargo Investment Institute
Given where interest rates are today and housing sector is seeing some rebound, I am quite sure that light consumer electricals which get into housing space where Havells portfolio lies, that could see some incremental growth, both in terms of wires, cables, switch gears, as well as their white durables portfolio.
Renu Baid, VP-Research, IIFL Institutional Equities
We would export and I think the country would also export. It is too early to say anything but exports will happen in good quantity. The world is short on sugar. So we will easily be able to sell our sugar. Watch here.
Vivek Saraogi, MD, Balrampur Chini Mills
As far as the Q1 performance is concerned, definitely, we were down. But there are positive signs when compare to the Q2 performance with the corresponding period last year. There has been a robust growth of around 16 percent in terms of revenue from operations and 9 percent in terms of total income. The YoY profit for the first half of the year also saw a slight increase of around 4 percent after taking into consideration that around Rs 27 crore we had to write off in Q2 on account of the COVID expenditure.
We expect FY22 to be a good year, but at the same time the drag of 2021, the lower base effect would definitely be there. Operations would be normalizing but whatever delays have taken place on account of the pandemic, some drag would be there in 2021-22. Watch here.
Sanjeev Singhal, Director-Finance, Mazagon Dock Shipbuilders
Asian Paints is looking at expanding the market instead of just gaining market share. There are lots of strategies in place so that we continue to grow the core business very strongly which is the whole business about bringing joy to people’s lives through paint and décor. The strategies look at expanding the overall market rather than looking at just share from the competition. We are looking at growing the per capita consumption by looking at avenues and straddling the markets to create more demand. Watch here.
Amit Syngle, MD and CEO, Asian Paints
We do think dollar will continue to depreciate, it will fall below 90. We do think in the near-term there is a risk of a dollar bounce possibly into the first quarter. The sentiment is already very weak, the consensus is very negative. It is the fact that we have had a weaker dollar overall, stronger inflows into Asia and India has been one of the biggest beneficiaries. So it is one reason why the rupee has underperformed some of its peers and I think that will continue into next year.
Reserve Bank of India (RBI) has appeared to be quite aggressive in its intervention in the last several months. It has been absorbing a lot of dollar inflows through intervention. Watch here.
Mitul Kotecha, Senior Emerging Markets Strategist, TD Securities
Empty containers are being brought in by shipping lines to India, but ports are unable to accept new containers as they are congested far in excess of their capacity. It is the slow inland movement of empty containers, therefore, which is further constraining capacity. Watch here.
Sunil Vaswani, Executive Director, Container Shipping Lines Association
Whether it is mortgages, whether it is credit cards, whether it is car loans, whether it is any financial service product, in my view, for the next one-two decades, you will see strong growth because of the low penetration level.
Housing has become very affordable over years. In 2020, a house is more affordable than what it was in 2004. We have seen that in the last three-four years, property prices in India have not gone up. If anything at the higher end, they have come down.
Income levels have gone up and therefore a cost of a house is a multiple of an annual income of a customer. It gets declined to make it more and more affordable. Watch here.
Keki Mistry, Vice-chairman and CEO, HDFC
Burger King was a blockbuster IPO listing, beyond the imagination of subtly assesses bankers. The response has been fantastic. 2020 has been, I would say a year of great IPO performance, we are seeing that momentum really carry through forward. If some of the large IPOs like LIC happens, I think you could have a record year. Watch here.
V Jayasankar, Sr ED & Hd-Eq Cap Mkts, Kotak Mahindra Capital
If we talk about the Indian market since the Supreme Court has removed the ban which was imposed by RBI we had seen roughly 8 percent growth in the Indian market. This growth has been continuously been carried since March. As we are seeing that their numbers are increasing, liquidity is increasing the whole Indian ecosystem is consolidating and they are trying for the next growth.
Currently, India has 4-5 reputable exchanges and if we see their numbers they are growing very organically and across all the platform. Definitely, these numbers have to match with the international counterparts because if we see the gap India has, there is a lot of room to grow. Watch here.
Kumar Gaurav, Founder, Cashaa Global