''I expect domestic institutions to see increased corpus in equities in months and years to come,'' says Manish Sonthalia, senior VP & Head - Equity PMS, Motilal Oswal AMC.
In an interview with Varsha Inamdar of Myiris.com, Manish Sonthalia said, ''Cyclicals are expected to outperform in the near term. Export oriented sectors are expected to underperform.''
Excerpt from interview Myiris had with Manish Sonthalia:
1. At current market levels, what are your views on the equity markets?
I expect 16-17% returns on the Nifty in a year’s time i.e. levels of 8,000 on Nifty by March 2015
2. What do you expect from Q4FY14 earning season?
I expect 14%, 12% and 13% growth in Sales, EBIDTA and PAT respectively for sensex companies in Q4FY14
3. Do you see rupee strengthening going forward?
It can strengthen a bit from the current levels of Rs 60 to a US Dollar, but I don’t think RBI is going to allow strength beyond Rs 58. They are going to build dollar reserves agressively.
4. According to you what will be the effect of general elections on equity markets? Can you give any stock recommendations for investors?
A lot of foreign money is waiting to come in post election results if Narendra Modi becomes the prime minister. If NDA does not come to power, markets will see a correction of 10%
5. What is the growth that you are expecting in assets of equity funds in near future?
Equity will remain the favored asset class for the next 5-6 years. There would also be less redemption pressure for domestic institutions. I expect domestic institutions to see increased corpus in equities in months and years to come
6. According to you, which sectors will likely to outperform or underperform in near term?
Cyclicals are expected to outperform in the near term. Export oriented sectors are expected to underperform
7. What is your advice to investors at this point in time?
The more you disbelieve the upmove in markets, the higher the price you will pay.