3 sectors that may give you freedom from worries this Independence Day
Siddhartha Khemka, Head-Retail Research, MOFSL, says there is very strong liquidity from the domestic flows – be it the DIIs, HNIs, retail investors and that is what we are also seeing in some of the IPOs that have come out. We would also see the appetite from the institutional side, both domestic and foreign, for the bulk of OFS or blogs that promoters or PE funds have sold. There is a humongous demand for some of these papers. That only shows that the appetite for the right quality of company and the right business is pretty strong in the market.
Why are we seeing so much of strength? Everybody is saying valuations are expensive, valuations are stretched, do not invest, save, do not invest, sit on cash, but markets are not coming down.
Siddhartha Khemka: If you look at the markets, yes, definitely a case of strong liquidity is supporting the sentiments and the indices as well. But what is also supporting so far has been the strong macros that have withstood the global headwinds and that continues to be the case which kind of makes a positive case going forward as well.
Whenever the interest rate cut cycle starts, the expectation of flows from global markets to emerging markets especially Indian markets could be pretty strong, especially given the fact that last few months, FIIs have been consistent sellers in the broader market and that is a space where despite you can say a lackluster performance by Nifty in the last couple of days the mid and small-caps have outperformed.
It is a case of very strong liquidity
