Speaking on market outlook Cio Manish Sonthalia of Emkay Investment Managers Said that the time to sell in the market was gone. Now there is no time to sell. Now the market can see a last 5 per cent decline from here. The time for shopping has come from the next 2-3 years of perspective. Manish believes that the Nifty’s earnings growth will be around 10-12 percent. If you take mid and smallcap, then you have more valuations of growth and Nifty’s PE, then there is no malfunction in shopping in mid and smallcap. Selecting can find opportunities for investment in mid-molecap.
He further said that tax relief has been given for consumption boost in the budget. Income tax payers have saved Rs 1 lakh crore. Now if you assume that 20 percent of the 1 lakh crore rupees will be saved, then 80 thousand crore rupees will be spent, then it has a multiplier of basic 5. In such a situation, the consumption will emerge as a big theme from the perspective of medium term. This is such a sector that has been under pressure for the last 1-2 years. Consumer desk will benefit the most of the relief in income tax. This includes auto, hotel, QSR, Foreign Travel and Medicare.
Manish Sonthalia says that on getting some correction, one should invest in banks, insurance, capital markets, exports, IT and pharma. Apart from this, he also likes consumer and housing finance companies in NBFCs. He believes that gold finance share is possible due to bounce in gold. China Plus One theme will benefit chemical shares. Flooro chemical is expected to grow.
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