Lauding the Modi government, Raamdeo Agrawal, Joint MD, MOFSL on Thursday said that the pace of decision making by the government has improved. In a conversation with ET Now he also shared his views on some stocks. “Business prospects are very high for fertilizer stocks. Likely to see limited returns in PSUs on uncertain future,” he told the channel.
In 2015 PM Narendra Modi launched an ambitious multi-purpose and multi-modal platform PRAGATI (Pro-Active Governance And Timely Implementation). This has helped immensely in addressing common man’s grievances and simultaneously monitoring and reviewing important programmes and projects of the Government as well as projects flagged by State Governments. Earlier this year, during an interaction through PRAGATI, Modi referred to the World Bank’s ‘Ease of Doing Business’ report and asked officials to assess progress in ease of doing business on the basis of the parameters outlined in the report.
Meanwhile, Agarwal also said that he is not hopeful of a broad-based earnings recovery. What needs to be noted here is that several analysts and market participants, including firms such as Goldman Sachs, Morgan Stanley, predict a strong revival in companies’ earnings in the current financial year and the next. While Goldman Sachs has upped its estimate for corporate earnings growth to 15% for the current financial year 2017-18, Morgan Stanley recently raised its growth estimate for the next year 2018-19 to 24%.
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Recently, Abhay Laijawala, Head, India Research, Deutsche Equities in an interview to CNBC TV18 said “Before you really see any kind of up move, you do need earnings to recover”. “… our sense is that consensus earnings expectations for FY18 are on a higher side,” he said, adding, “… until we see earnings expansion, it’s difficult to see the markets re-rate,” he added.