From a structural perspective, India is on the right path: Sonam Udasi, Tata AMC

In a chat with ET Now, Sonam Udasi, Fund Manager, Tata Asset Management, says Q4 might be the first sign for some of the NBFCs whether pain has started to come off or not



ET Now: What are your thoughts on earnings? Next week, the fourth quarter earnings season will be kicked off which could provide a trigger for the markets. What are your thoughts?

Sonam Udasi: Some of the bad news is already anticipated in terms of higher provisioning for the banking sector, especially the corporate banks. So I do not think that will come as a surprise. On the positive side, really the input cost that has eased YoY and will continue to benefit a lot of the consumption names in terms of gross margins and a lot of durable names as well. This quarter might be the first sign for some of the NBFCs whether the pain has started to come off or not. That will be a sign that we will watch out for. Also how the cement offtake was and how the cement companies are declaring results will be watched.

ET Now: Do you believe that the global growth concerns may also have the potential to shrink our market valuations further?

Sonam Udasi: So we are concerned with what is happening globally. We are concerned by the different signals that keep emanating from China, Europe and even the US that said Indian markets have always faced this every two years. So as long as Indian fundamentals remain robust -- from the economic perspective we are on the right path -- fiscal consolidation is going on. From a structural perspective, India is on the right path and I do not think that is going to take away anything for long term investors. By long term at least you should have a two-year perspective.