Harish Krishnan, Kotak AMC joins ET now to help us understand markets right now and way forward . “One needs to reflect on the big moves taken places in Indian equities over last 15 months” he says. He further highlights three broad similarities in India vs global cues playing through equities. Firstly, earnings have shown substantial growth globally; India has seen doubling of profit from the lows.
Secondly, across the world seen corporate balance sheets in the best of health exemplifying that demand is here to stay. Furthermore, Rising non-institutional participation in markets. He believes it’s important to view Indian equities unfolding in light of global cues.
Over 18-24 months he expects higher volatility on the back of global cues, believes one needs to reassess asset allocation, and aim for better quality companies.
Talking about the areas of key divergence India vs Globally. He lays emphasis on interest rates scenarios, the last 3-4 seen massive divergences across the globe. Secondly, across the world “Consumer Health” is doing very well whereas in India the real pain lies at the bottom of the pyramid.
Bullish on Indian IT sector on the back of “Resilience” shown by sector during the pandemic. He believes covid will accelerate demand in the IT space and foresees a lot of opportunities going forward. Furthermore, throwing some light on the auto sector he believes in India lower-end SUVs are gaining higher traction on the back of affordability.
He’s of the opinion that trends like ‘SUVization’ are long-lasting and dominant players in these segments will continue to show stronger market share gains going forward.
