​And probably the key stocks are the ones that also saw quite some bit of run up in recent times to name a few. If one would look at an industry level, the key stocks that were exited would include Kotak Bank, ITC, HCL, Zomato.
​And probably the key stocks are the ones that also saw quite some bit of run up in recent times to name a few. If one would look at an industry level, the key stocks that were exited would include Kotak Bank, ITC, HCL, Zomato.
Yes, again, go back to what we said earlier when we continue to have that view that over the next two years we think that the small cap and midcap would do much better than the large cap and the reasons are two. One is that earnings will be better for the small cap and the midcap relative to the large cap.
I think we are at least four years away from demand and supply catching up. The reason being hotels are a brick-and-mortar business which take time to develop and from announcing a hotel to actually opening it to guests can be anywhere between four to seven years depending on how efficient the organisation is in developing the hotels. So, we have got a fair length of runway, four years at least.
​So to characterize all of this, the hole that was created in the Indian economy due to the lockdowns in the past has now largely been filled.
​We have done correlation analysis of rainfall with sector sales and the only sector where rainfall tends to affect sales volumes is two wheelers. It does not tend to matter too much for cement, four wheelers, tractors and so on. But for two wheelers, we have historically seen an impact of lower rainfall on sector sales.
​But I think it is getting resolved in the minds of investors. And if growth is making a comeback that we believe it is, Bajaj Finance could lead the NBFC pack at the moment.
I think there are two-three ways to approach the IT sector as of now because the market is not clear on in terms of how the growth is going to pan out. So, one macro indicator now is that the Nasdaq and the S&P 500 are recovering and doing well.
We expect Nifty 50 earnings to grow at a CAGR of 15% over the next two years, providing enough cushion from a valuation perspective in the medium to long term.
While the US central bank policy actions do have a bearing on the local policy rates as well, for now, we think RBI’s action will be driven by local macros.
