ET NowIn a chat with ET Now, Prateek Agarwal, ASK Investment Manager, talks about the markets and some sectors. Excerpts:
ET Now: How much of the recent price action is a function of global strength?
Prateek Agarwal: The global backdrop is definitely helping India. The Budget helped the markets by way of the cut in corporate tax rates. Now, many suffering entities have the prospect of an EPS increase post-Budget. So, that was the budgetary boost for markets.
Global liquidity is the bigger booster for our markets. There is no two ways about it. Not only equities, in many parts of the globe people are investing even into the bond markets without any hope of return.
In that kind of a situation, equities-versus-debt on a global basis presents a pretty attractive picture. India is clearly one of the few markets that have been the flavour of the season.
ET Now: There is strong sectoral rotation happening. Up until now it has been IT, pharma, consumer names. Is it time to change the lane? Can you give us a new idea?
Prateek Agarwal: I think the good part will continue to do well. A new area which should gain traction would be the oil marketing companies. As of now, prices are different for different pumps. Companies are able to get different average prices for even a diesel-type commodity versus the nationalised oil companies.
So, there is something interesting going on. Even if our margins become similar to those of the ASEAN region, some of these OMC names could really deliver very stellar results. So, it is a space that has caught our attention lately.
ET Now: How much of the recent price action is a function of global strength?
Prateek Agarwal: The global backdrop is definitely helping India. The Budget helped the markets by way of the cut in corporate tax rates. Now, many suffering entities have the prospect of an EPS increase post-Budget. So, that was the budgetary boost for markets.
Global liquidity is the bigger booster for our markets. There is no two ways about it. Not only equities, in many parts of the globe people are investing even into the bond markets without any hope of return.
In that kind of a situation, equities-versus-debt on a global basis presents a pretty attractive picture. India is clearly one of the few markets that have been the flavour of the season.
ET Now: There is strong sectoral rotation happening. Up until now it has been IT, pharma, consumer names. Is it time to change the lane? Can you give us a new idea?
Prateek Agarwal: I think the good part will continue to do well. A new area which should gain traction would be the oil marketing companies. As of now, prices are different for different pumps. Companies are able to get different average prices for even a diesel-type commodity versus the nationalised oil companies.
So, there is something interesting going on. Even if our margins become similar to those of the ASEAN region, some of these OMC names could really deliver very stellar results. So, it is a space that has caught our attention lately.
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