It is heartening to see the Nifty scale back to the levels it had shot to in July after a period of consolidation, Envision Capital MD and CEO Nilesh Shah told CNBC-TV18.
“I think it is clearly the government’s tax reforms as well as the initiatives on privatisation which essentially have acted as a booster dose, but going forward, I think it would essentially be a more aggressive stance on privatisation,” he said.
In terms of sectors, Shah says essentially it is going to be the consumer and the financials which are going to be the mainstay of the Indian public markets platform.
“The reality is that the markets essentially are slaves of growth and therefore the pockets which are demonstrating growth, which are very consistent and are getting driven by the broad India opportunity, those are the spaces and those are the pockets, which will continue to outperform,” he observed.
Shah noted that the market is in no mood to lift the underperformers as it wants growth and capital efficiency. Some of the beaten down sectors are still showing no promise of growth or capital efficiency. I still believe that it is going to be quality, it is going to be growth, it is going to be capital efficiency, which will continue to drive markets going forward,” he stated.