'Will see more selling going forward,' says Jefferies India's Mahesh Nandurkar
Speaking with Business Today TV, the ace equity strategist said, “I still maintain my view that it's still going to be a difficult year even from here on to make positive returns and I believe that the markets are probably going to move in a sideways fashion for the next six to nine months.”
- Jul 6, 2022,
- Updated Jul 6, 2022 3:34 PM IST
The Indian equity markets could see more selling pressure going forward, says market guru Mahesh Nandurkar, managing director and head of research, Jefferies India.
“The reason is that the valuations of the Indian markets on a relative basis are still on the higher side. I will not be surprised if the selling continues for some more time,” he said.
Speaking with Business Today TV, the ace equity strategist said, “I still maintain my view that it's still going to be a difficult year even from here on to make positive returns and I believe that the markets are probably going to move in a sideways fashion for the next six to nine months.”
Nandurkar added that while foreign investors have been selling at a vigorous pace, the trend of domestic investors stepping in has helped the Indian markets to stay reasonably strong.
“I am very positive on the economic and corporate earnings outlook. I believe that while the rest of the world and the United States and Saudi Arabia and other major markets are going through a period of recession, driven by much higher interest rates, India actually has a lesser downside,” he added.
On the recent government decision to impose a tax on petroleum product exports, Nandurkar said the latest changes in the regulatory environment have created some uncertainty in the minds of investors.
“I think there's also some worry about how long will these windfall taxes will remain in place, and whether, even after oil prices and margins correct, these taxes will still continue to stay,” he said.
Explaining the dichotomy between the economic cycle and the equity valuation cycle, Nandurkar said, “I believe that the Indian companies have shown great resilience to global headwinds. They have been able to take adequate price hikes – which have resulted in volumes contracting, especially in the price-sensitive segments. I will not rule out small downgrades going forward, but I'm not anticipating larger downgrades.”
Nandurkar believes that the housing market upcycle will last for another four or five years, if not more. He is positive about the auto sector and predicted many of the four-wheeler stocks delivering good returns from here on. He remains bullish on the banking sector as this sector is standing out in terms of valuations as well as credit costs being at a lower level.
Also Read: Here’s what Zerodha founder Nithin Kamath has to say about investing in real estate
Also Read: If something is too good to be true, then it’s not true: Sunak’s parting shot to Johnson
The Indian equity markets could see more selling pressure going forward, says market guru Mahesh Nandurkar, managing director and head of research, Jefferies India.
“The reason is that the valuations of the Indian markets on a relative basis are still on the higher side. I will not be surprised if the selling continues for some more time,” he said.
Speaking with Business Today TV, the ace equity strategist said, “I still maintain my view that it's still going to be a difficult year even from here on to make positive returns and I believe that the markets are probably going to move in a sideways fashion for the next six to nine months.”
Nandurkar added that while foreign investors have been selling at a vigorous pace, the trend of domestic investors stepping in has helped the Indian markets to stay reasonably strong.
“I am very positive on the economic and corporate earnings outlook. I believe that while the rest of the world and the United States and Saudi Arabia and other major markets are going through a period of recession, driven by much higher interest rates, India actually has a lesser downside,” he added.
On the recent government decision to impose a tax on petroleum product exports, Nandurkar said the latest changes in the regulatory environment have created some uncertainty in the minds of investors.
“I think there's also some worry about how long will these windfall taxes will remain in place, and whether, even after oil prices and margins correct, these taxes will still continue to stay,” he said.
Explaining the dichotomy between the economic cycle and the equity valuation cycle, Nandurkar said, “I believe that the Indian companies have shown great resilience to global headwinds. They have been able to take adequate price hikes – which have resulted in volumes contracting, especially in the price-sensitive segments. I will not rule out small downgrades going forward, but I'm not anticipating larger downgrades.”
Nandurkar believes that the housing market upcycle will last for another four or five years, if not more. He is positive about the auto sector and predicted many of the four-wheeler stocks delivering good returns from here on. He remains bullish on the banking sector as this sector is standing out in terms of valuations as well as credit costs being at a lower level.
Also Read: Here’s what Zerodha founder Nithin Kamath has to say about investing in real estate
Also Read: If something is too good to be true, then it’s not true: Sunak’s parting shot to Johnson