A lot of money chasing little stocks but now investors navigating from higher to lower quality: Pankaj Tibrewal
Pankaj Tibrewal, Senior EVP & Fund Manager (Equity), Kotak MF, says “our sense is that consumption around the second half of this year should start picking up, led by festive season as well as election spending and do not forget that this time the wedding dates in the second half are about 35-36 days which is one of the highest over the last four-five years. So, broadly speaking, in the near term, markets may face headwinds. However, if you take a three- to five-year view, India is very nicely positioned from an economic cycle perspective.”
Tibrewal also says, “a lot of money is probably chasing little stocks and now market participants are navigating from higher to lower quality. This is something we need to be a little worried about and hence our cautious stance on mid and smallcaps in the near term. But if you take a three-five-year view, the space is always exciting. There are bottom-up opportunities.”
With the negative undertone that we are seeing across on the Wall Street with rising bond yields, etc, do you believe that it poses a major threat for our own markets or do you think that we will continue to hold out and these are just mere bumps along the way?
In the near term, there are headwinds both from global and local economic data which are emerging.
Globally, we have seen 10-year bond yields inch up to 4.8%. Crude is at $95. Clearly, the commentary coming out from the Fed is that rates may remain higher for longer.
Clearly, that may pose headwinds for equity markets globally speaking.
In India also, there is a dichotomy going on currently at the ground level. Consumption on one hand seems to be on the weaker side, especially the lower end of the pyramid and clearly, the volume growth of many companies in
