The upcoming union budget will be the biggest trigger for the stock markets in 2018, said Nilesh Shah. He also expected the government to ensure that the investment cycle gets revived in the coming year. However, national politics will be unlikely to play a big event for the markets in 2018, told Nilesh Shah, Managing Director of Envision Capital told CNBC TV 18. Earlier in November this year, Nilesh Shah had said that the rally in the Indian stock markets could extend well beyond 2018. In an interview with ET Now, Nilesh Shah had then said, “There’s a broad consensus that 2018 is likely to be a better year. One should now get into the stock market with a two year kind of perspective. The positivity and optimism should extend well beyond 2018.” Explaining his bullishness on the stock markets, Nilesh Shah had said, “The positives from the structural reforms whether it is GST or demonetisation, should play out over 2018 and 2019. Corporate India, which has been plagued by single digit earnings growth so far, could enter into double-digit growth.”
Famous market expert Porinju Veliyath earlier in November this year had predicted that the select midcap and smallcap stocks can beat the benchmark many times over. In an interview to CNBC TV18, Porinju Veliyath had said, “ If you look at the Nifty and Sensex, you may make 8-10 percent CAGR for next five years’ time. If you buy the market, you may make 10-15 percent CAGR. If you pick stocks, you may make 25-30 percent CAGR for next five years or maybe 10 years’ time. However, very smart people out there who are looking at specific pockets of opportunities like turnarounds in the midcap and smallcap, they may end up making 40-45 and maybe 50 percent CAGR for a long time to come. So that is the kind of opportunity India is looking at now.”
Meanwhile, Jonathan Garner of Morgan Stanley today said that he sees better earnings growth acceleration in 2018. “The Indian markets have been different from other emerging markets. Growth has been quite choppy in India in the past 12 months. We should see earnings grow at 12% year on year, as the impact of GST and demonetisation is behind us,” Jonathan Garner, Chief Asia & EM Equity Strategist at Morgan Stanley told CNBC TV18.