Andrew Holland, chief executive officer (CEO) of Avendus Alternate Strategies, on Monday, forewarns of more volatility to be expected in markets on account of inflation.
Speaking in an interview with CNBC-TV18, he said, “Expect more volatility as there is debate about inflation, growth prospects of whether they could dampen from September onwards and the Federal Reserve’s meeting this week; this is going to keep the market volatile in terms of expectations and it could be between inflation growth and tapering.”
According to him, improvement in the Indian economy over 2-3 years will aid the banking sector. “We like the private banks going forward, and our expectation would be that as the economy picks up, and it’s going to be a 2-3 year move in the economy; the banking sector will have to grow along with the growth in the gross domestic product (GDP),” said Holland.
He also said that he expects the upcoming initial public offerings (IPOs) to do well.
“I would expect them all to do well and they will be taken up readily, not just by local investors but foreign investors; if you look at the quality of anchor book of Zomato, it was spectacular. And with problems in China with an intervention in a lot of the new economy stocks, investors are increasing outlook in India as a way to play the growth,” said Holland.
For the entire interview, watch the video.