1. US hedge fund manager explains why it might be time for stock market correction

US hedge fund manager explains why it might be time for stock market correction

While the earnings season has been good so far improving the overall sentiment leading to surge in the equity benchmark indices Sensex and Nifty, Arvind Sanger of Geosphere Capital says that the stock markets could see a slight correction in the near term.

By: | Updated: November 8, 2017 1:32 PM
Arvind Sanger of Geosphere Capital says that Indian stock market will see profit booking in the near term. (Image: Reuters)

While the earnings season has been good so far, improving the overall sentiment leading to surge in the equity benchmark indices Sensex and Nifty, Arvind Sanger of Geosphere Capital says that the stock markets could see a slight correction in the near term due to profit booking. In an interview to CNBC TV18, Arvind Sanger, Founder and Managing Partner of Geosphere Capital said, “We are still waiting for that big turn in earnings. These are the kind of times when you see some profit booking. This is not to suggest that the cycle is over, but there might be a slight correction.”

Foreign investors may have turned cautious of the rally in Indian stock markets, however, Cartica Management LLC, which manages more than $3.2 billion of assets globally is convinced that India is going through a quality stock market rally. In an interview to CNBC TV18,  Teresa Barger, the co-founder and CEO of Cartica Management said, “ You had EPS growth, at least in the companies we like. This is a quality kind of rally. So, as longer-term investors we are not concerned about the hiccups.”

Back home, many mutual fund managers are suggesting that the earnings season so far has indeed been better than anticipated.  In an interview to ET Now, Taher Badshah CIO (Equities), Invesco Mutual Fund said this week,“ One should dissect the earnings to see how many companies are actually over-delivering, or beating street estimates versus earlier. An analysis of the 35 companies of Nifty which have delivered results so far, 75% of them have actually beaten street estimates, or at least met them. This number was closer to 55% in the last four or five quarters. This is a better way to track earnings delivery versus expectation, and I believe on that front, things seem to be getting better.”

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