Asking investors not to panic over the Indian benchmark equity indices shedding 300-350 points from the highs reached in the recent months, famous market expert Ramesh Damani says the market correction is due to the profit-booking happening at the year end. In an interview with CNBC-TV18, Ramesh Damani said, “2017 has been a vintage year for India and global equity markets. You have not had a better year than this one. This is just end of the year profit booking happening and I don’t see a reason to panic,” Confident about the global economic growth getting back on track, the veteran market expert anticipates that moving forward the interest rates are going to remain low in China, Japan and the US. On being asked about his stock pickings for the next year, Ramesh Damani said, “I am bullish on quick-service restaurants, property and companies dealing with cybersecurity.” He is also bullish on large, well-capitalised PSU banks. “With NCLT auction coming up, some of the provisions could be written back. The market could re-rate the stocks too,” he told CNBC-TV18.
On the same lines as Ramesh Damani, top fund manager Nilesh Shah earlier in October had said that the rally in the Indian stock markets could extend well beyond 2018. In an interview to ET Now, Nilesh Shah, Managing Director of Envision Capital had 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 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.”
After the earnings came in better than anticipated in the second quarter ended September-17, many experts including Abhimanyu Sofat of IIFL had said that India Inc will enter into double digit earnings growth. In an interview to ET Now, Abhimanyu Sofat ,VP- Research, IIFL had said, “After a long time, we are going to hit double digit earnings growth. We look quite optimistic about the future in terms of earning momentum where the consumer cycle also improves with the shift from the unorganised to organised as well.” On similar lines, Jonathan Garner of Morgan Stanley had said, “We are cyclically at the beginning of an upswing in activity and in credit growth and therefore in corporate earnings. So look at corporate earnings growth. We should be getting at least high teens year-on-year (Y-o-Y) earnings growth for the next two years running.”