In an interview to CNBC-TV18, Saurabh Mukherjea Founder of Marcellus Investment Managers, shared his reading and outlook on markets, specific stocks, and sectors.
Mukherjea expressed his concern about the current health of non-bank financial institutions. "The vast majority of our NBFCs will find it difficult to pull through this shakedown of the NBFC sector. Barring the 4 strong CASA franchises in our banking sector, others will struggle in our private sector banking sector," he said.
Mukherjea also reiterated his concern that a majority of NBFCs will find it hard to survive going forward. "I think I said on your channel six months or so ago. Two-thirds of the NBFC sector will find it difficult to survive. They have got fundamentally unviable financial constructs. They are borrowing money in the short term, the CD market is pretty much shut to all of these players barring two or three," he explained.
Speaking about the overall condition of markets, he said, "Given the state of the economy this is bound to happen from time to time. We really have very little fundamental support for the market, the whole thing has been riding on the government reform momentum. We haven't had a reform announcement for a couple of weeks and Reserve Bank of India did make things a little difficult yesterday. So, this sort of pullback is to be expected."
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