Sanjay Dutt, director at Quantum Securities, spoke to CNBC-TV18 about the stock market outlook for 2019 and his views on overseas inflows.
Dutt believes that the year 2019 will be the year for emerging markets (EMS) and more so for India.
According to him, "In 2018, India saw huge outflows from FIIs but the DIIs supported the market. In 2019, EMs would see some inflows because the matured markets have slowed down and are having some of their own internal problems and India being a strong domestic growth story would be a natural choice for FIIs to deploy money."
"The other reason why India is poised for good 1-2 years ahead is because some of the fundamental reforms have fallen in place," said Dutt.
According to Dutt, the big stories or sectors for the next one-two years would be capital goods, public sector banks, insurance and healthcare.
"PSU banks will start seeing better lending practices and recovery in NPAs. However, the only worry is that reforms in PSU banks are missing despite capitalizing", said Dutt.
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