Talking about recent correction and further outlook in the market Alchemy Capital Management Quant Head and Fund Manager Alok Aggarwal Said that correction pain in the market is quite deep. A lot of factors in India are coming together the reason for this correction. Alok Aggarwal further said that after the US election, it has been seen to a large extent that money is going out of the emerging market and going towards the US market. The US Market Alltime High and Dollar Index has increased at a time when Indian companies have a slowdown in the earnings and the outcamp of economy data is also pointing to the slodown.
There is a slowdown in the market at a time when the valuations of the market were not cheap. Due to the coming of all the factors together, the correction in the market seems to be very much. However, there is no problem in the long and medium periods.
Problems in credit growth of big private banks
Talking on Lajcap Bank shares, he said that there are problems in credit growth of big private banks. The high margin products of banks have more slowdowns. Private banks are not so high in overall earning growth. This is a sector which is largely overvode. Overvode sector where earning growth is not coming due to which this sector is not able to outperform. The day these things will turn, that is, the credit growth and margin of banks will start to improve.
Neutral view on the sector
Talking on the cement sector, Alok Aggarwal said that the cement sector is an impure of having capes. In India, there has been some lethargy compared to estimates in Capics. Due to which the sector remained in compact. At the same time, the second ectal of another big player. We have a neutral view on cement. However, the long -term attitude of this sector is quite positive. But the Near Term is a bit difficult. Till then there is a neutral view on the sector.
Positive approach on capital market space
Talking on the stocks of the stock market -related broking companies, Alok said that the view on this sector is quite positive. Penting in option market in India and in normal trading is increasing to a great extent. Retail behavior has been quite different. Retail investors have continued to invest in mutual funds and markets even in the market fall. Broking segment, wealth management segment, mutual funds, exchange segments all seem to be very good. There is no debt in the balance sheet. Further growth runrators of companies associated with the capital market are quite high. Therefore, we have a positive attitude on the entire capital market space.
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