Saurabh Mukherjea, founder of Marcellus Investment Managers, said that the economic slowdown is cyclical and that the market will recover from it in the second half of the current financial year.
“Everybody knows that we will get a weak GDP print and corporate earnings in Q2. So if there is any stoppage in positive announcements from the government of India, the apprehension immediately kicks in and for this slide to be arrested we need the FM to come up with specifics of fiscal boost sooner rather than later,” he said in an interview with CNBC-TV18.
“...an economic slowdown which is more cyclical rather than structural and a correction in stock market access which I still believe has some way to go,” Mukherjea said.
About stocks, Mukherjea said, “Three themes which have worked well, which will work well for the remainder of the fiscal are... elite financials, the top quality private-sector lenders... HDFC Bank, Kotak, Bajaj Finance.”
“Alongside that, the top quality FMCG and some of the FMCG giants have given positive guidance. In the first quarter of this year the FMCG stocks in our portfolio had earnings growth of around 17-18 percent which gives a sense of how strong these elite FMCG companies are,” he further added.