In an interview to CNBC-TV18, Pankaj Tibrewal, senior VP & Equity Fund Manager at Kotak Mahindra AMC, said that if earnings are supportive, market has further legs in the medium to long term.
He said, "For the last 5-6 years we have seen that markets always have over-estimated the earnings and the actual numbers have been much below expectations. However, post pandemic the numbers surprised the street. 30 percent of the Nifty companies have reported till now their Q3 numbers and the results seem to be very good. Earnings growth of these 30 percent of the Nifty companies have been more than 20 percent and the expectation was in the region of 10-11 percent."
Tibrewal also said that he is positive on building material and home improvement sector.
He said, "One of the themes which we have been positive and bullish upon for the last year or so is the home improvement space or the building material space. I think the space has more legs. Over the last 5-6 years, all the companies, whether it be tiles, plywood, consumer durables, wires and cables, paints, they have disappointed on the volume growth because the tailwind of real estate was not there. Now if the cycle has started to turn, we could be surprised on the volume growth front. Hence we are positive on the entire building material and the home space."
Watch video for more.Disclaimer: The views and investment tips expressed by investment experts on CNBCTV18.com are their own and not that of the website or its management. CNBCTV18.com advises users to check with certified experts before taking any investment decisions.