Ajay Srivastava, CEO, Dimensions Corporate Finance Services, in an interview with CNBC-TV18 shard his views on the outlook for market and Modi 2.0.
On market, Srivastava said, “We keep changing our stance on the market and today we have bearish view but in the same breathe I would say a lot of stocks which have done well where you can remain invested profitably and there are sectors in the economy like autos which are doing badly, which have very little hope of recovery in short-term.”
It will be a mixed bag with regards to earnings but the good numbers are outnumbered by bad numbers and that is the only problem in the market, he said, adding that there are certain pockets which have done reasonably well and should hope to do well in the near-future.
On Prime Minister Narendra Modi's second term, Srivastava said, "On the ground what we need to go low on compliance because the compliance system has become so complex that it is killing the MSMEs and for liquidity, we do not need a land reform to get money into MSMEs. We also need to have forbearance kind of restructuring scheme available to them from banking. So a lot of small steps are more important than big-ticket reforms.”
“Smaller steps are liquidity, compliance burden and more importantly policy shift towards MSMEs and real estate,” he said.
Sector specific, Srivastava said the focus on large ticket companies in infra or economy facing sectors that are reasonably valued. With regards to the autos, he said the house is short on the space and the real bloodbath is yet to arrive for the sector.