The Indian equity market has been resilient in these uncertain times, said Nilesh Shah, MD & CEO of Envision Capital, on Wednesday.
Speaking in an interview with CNBC-TV18, he said, “Market has been a lot more resilient than what it could have been especially the kind of impact the second wave of COVID is having or is likely to have in this quarter.”
But Shah added that earnings have been strong which is a big driver and that domestic liquidity continues to be extremely strong.
Moreover, he noted that there is a strong tailwind which our markets are enjoying because of global markets - the global markets too have been extremely resilient and buoyant and that’s encouraging the markets here as well, said Shah.
Shah believes that the midcap IT space continues to look promising and one of the companies he likes is Birlasoft. It continues to guide on a positive mode and have set a pretty lofty aspiration for the next 3-4 years, he added.
Among stocks, Shah believes that HDFC Bank and Kotak Mahindra will sustain lofty valuations. “HDFC Bank and Kotak Bank could struggle as competitor intensity picks up and the valuations of ICICI Bank and SBI are more attractive than some of these efficient banks. So the challenge, I do not believe is so much about the business, but the challenge is more in terms of relative valuation,” he said.
For the entire interview, watch the video