Discussing market outlook Nepean Capital’s co-founder and managing partner Gautam Trivedi said that for the last 4-5 months, FIIs have been continuously selling in the Indian market. There are many reasons for this. But the biggest reason for this is that the Indian markets are the most expensive in the world. So far, almost 12-14 percent earning growth has been seen in our markets. But this year in the US, S&P500 is expected to have 13 per cent earning growth. In such a situation, if American investors are getting 13 percent returns in their home, then why will they turn to other markets. This is a very big reason, due to which we are constantly getting to see FII selling.
FIIs are selling a lot in large cap. In such a situation, some large cap stocks look good after correction. Gautam also says that so far many mid and small cap stocks have fallen by 50 percent. In such a situation, we should also focus on quality mid cap.
Talking on auto shares, Gautam said that the auto sector can be even bigger in India. But due to tax and duty, the price of cars in India increases greatly. The government should reduce the 5 layer GST applied to auto. The step of one company like Tesla is not going to have any huge impact on this sector. There is a need to reduce tax to give a boost to the auto sector.
Experts Views: Chancement and IT shares are focus
Talking on banking shyars, Gautam Trivedi said that the valuation of banking stocks is good. But the possibility of their growth looks weak. The RBI has tightened on the unsecured loan, it is also correct. But until the private sector capex does not grow, the demand for loan is not going to increase. Our economy has lethargy to about 3 quarters. Also, private sector Capex has not started yet. Large groups of the country are also taking loans from foreign banks instead of domestic banks. In such a situation, growth is a big problem for banks at this time.
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