The Indian economy can see a pickup by Q4 of FY20 if the RBI and the government take effective action on the NBFC issue, said Saurabh Mukherjea, founder of Marcellus Investment Managers.
“The RBI does need to step in and inject confidence into the sector by voluntary asset quality review (AQR) of the sector," he said in an interview with CNBC-TV18.
Indian market is still around 10 percent overvalued at the market level, Mukherjea said.
“I have never seen any correlation between PE multiples and stocks which can make money. It is a very rare case in our country that companies that will make money will look cheap on PE multiples,” he said.
Speaking about pharma space, he said, “Our focus is on companies which are selling into the western hemisphere but selling to big pharma.”
On OMCs front, Mukherjea said, “Underlying demand environment in our country is not as bad as a lot of people are making it out.”
“Whilst electric vehicles (EVs) could eventually dampen demand for oil marketing companies (OMCs), I do not think we are there just yet."