I have different outlook in terms of where the value is and therefore I am buying, but not necessarily in the names that have gone up, is the word coming in from equity market expert Anand Tandon.
"In fact my argument always has been that when the market corrects itself significantly and don’t see the current correction as a significant so far. If it were to correct itself significantly, the leaders of the current rally will not be the leaders of the next rally. So I don’t see any reason to be buying this correction," he said, adding that the market could pretty much bounce from where we are and stay up.
On the growth front, he is of the belief that most economies will see contraction in the first quarter. The consensus estimate for this year's earnings growth is at 27-28 percent earnings growth but as usual it is a chimera. If you get a double digit growth of 12-15 percent earnings that would be great, he said in an interview with CNBC-TV18.
When asked about the possibility of rate cut by RBI after a cut by US Fed, he said, “I do expect that yields will continue to fall, I am not so sanguine that they will be cutting very fast and especially 50 basis points. I don’t think they count beyond 25. So, the best you will probably get near term is likely to be 25 basis points.”
"Overall, yields will continue to fall, from an investment perspective, my opportunity is to be buying credit risk funds," he said.
Stock specific talking about PVR and Jubilant FoodWorks he said, “Near-term I don’t know, there could be a bounce because they have fallen but medium term, I would argue that they are still not at the right point to enter even if you are looking at a one-year time frame simply because we haven’t seen the kind of number depredation that will happen because of people staying away from theatres and restaurants etc.”
Speaking about IndusInd Bank he said, “I have a bet on someone that it will see a price of Rs 850 but that is my personal view. I think there is some more downside left in IndusInd Bank largely because the book is still not cleaned out or not being fully priced.”
While giving his view on pharma he said, “Pharma is a portfolio that I have had for a long time but it is not the best time to be adding to that because now the question is will the government step in and stop exports etc. for some of those where there could be making serious money. At this stage certainly the valuation relative to the rest of the sector is still relatively cheap. Selectively, there are opportunities in pharma like in most of the places but it is not something that I would load up beyond let us say a 15 percent overweight relative to the weightage in the Index.”Disclaimer
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