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Top market and economy voices on real estate, bond yields, gold, and more

Updated : March 06, 2021 12:48 AM IST

Here is what market gurus and industry captains said about the near-term trajectory on March 5, 2021.

 On Real Estate | Pankaj Tibrewal of Kotak Mahindra AMC:  After 5-6 years of subdued performance, real estate is on the cusp of revival. He also believes that the entire home improvement space, which revolves around real estate is well poised. These are the two themes that are overarching in our portfolio. We are positioned across – whether it be consumable to ride the manufacturing up turn, whether it be the entire home improvement to ride the entire real estate revival.    Catch the conversation here.   
On Real Estate | Pankaj Tibrewal of Kotak Mahindra AMC: After 5-6 years of subdued performance, real estate is on the cusp of revival. He also believes that the entire home improvement space, which revolves around real estate is well poised. These are the two themes that are overarching in our portfolio. We are positioned across – whether it be consumable to ride the manufacturing up turn, whether it be the entire home improvement to ride the entire real estate revival.  Catch the conversation here. 
 On Interest Rates | Julien Larfargue, Head of Equity Strategy at Barclays:  If interest rates go up, equity will still go up. Rates are going up on the strong economic recovery expectations, so it will be normal for the rates to go higher. Therefore, higher interest rates are not necessarily a big problem for equity markets. We do expect the rates to go higher and as long as this is controlled, we don’t see it as a big problem for equity markets in general.   Catch the conversation here.   
On Interest Rates | Julien Larfargue, Head of Equity Strategy at Barclays: If interest rates go up, equity will still go up. Rates are going up on the strong economic recovery expectations, so it will be normal for the rates to go higher. Therefore, higher interest rates are not necessarily a big problem for equity markets. We do expect the rates to go higher and as long as this is controlled, we don’t see it as a big problem for equity markets in general. Catch the conversation here. 
 On  Yields | Jonathan Schiessl, emerging market strategist:  At this stage, the yields are rising primarily due to the bond markets following equity markets a bit late. Equity markets were pricing in a global recovery whereas bond markets were stubbornly ignoring it. I think bond markets now are pricing in that recovery and therefore the risk of inflation. So for the time being I would say it is the recovery that is driving yields higher which historically isn't a bad time to be in equities. I will not say that this is the end of the bull market in equities just yet.   Catch the conversation here.   
On  Yields | Jonathan Schiessl, emerging market strategist: At this stage, the yields are rising primarily due to the bond markets following equity markets a bit late. Equity markets were pricing in a global recovery whereas bond markets were stubbornly ignoring it. I think bond markets now are pricing in that recovery and therefore the risk of inflation. So for the time being I would say it is the recovery that is driving yields higher which historically isn't a bad time to be in equities. I will not say that this is the end of the bull market in equities just yet. Catch the conversation here. 
 On Gold | Jonathan Barratt of Probis Securities:  We will see gold restore value, but we just need to see how the Fed is going to look to control and how the other central banks are looking to control it. The central banks are still buying gold, they are just seeing this dip as an opportunity to get long. He said that a break above USD 1,725 would be an encouraging sign to get into the market.   Catch the conversation here.   
On Gold | Jonathan Barratt of Probis Securities: We will see gold restore value, but we just need to see how the Fed is going to look to control and how the other central banks are looking to control it. The central banks are still buying gold, they are just seeing this dip as an opportunity to get long. He said that a break above USD 1,725 would be an encouraging sign to get into the market. Catch the conversation here. 
 On Oil under GST | Soumya Kanti Ghosh, Group Chief Economic Advisor at State Bank of India:  The taxes on oil, it is different across 30 states in India. It is different for the Centre and even in a state like Maharashtra, we have two taxation structures – one for Mumbai and one for Navi Mumbai. So, in effect, we have around 31 tax structures for oil in the country. Given that right now everybody is talking about growth as the first priority and fiscal consolidation or fiscal austerity for that matter may have been pushed into the background for the next 3-4 years, I think right now the time is just may be right to push oil under GST.  Catch the conversation here.   
On Oil under GST | Soumya Kanti Ghosh, Group Chief Economic Advisor at State Bank of India: The taxes on oil, it is different across 30 states in India. It is different for the Centre and even in a state like Maharashtra, we have two taxation structures – one for Mumbai and one for Navi Mumbai. So, in effect, we have around 31 tax structures for oil in the country. Given that right now everybody is talking about growth as the first priority and fiscal consolidation or fiscal austerity for that matter may have been pushed into the background for the next 3-4 years, I think right now the time is just may be right to push oil under GST. Catch the conversation here. 
Published : March 06, 2021 12:48 AM IST
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