Amit Khurana on why Dolat Capital upgraded chemicals sector, how to play housing theme
Amit Khurana, Head of Equities, Dolat Capital, says a serious outperformance by India from here in the near term, looks a little bit of a challenge. But India remains the best emerging market to play over the next few years. But near term, some normalisation is required to get to healthy market levels and price levels that one can enter.
Is it possible that the market might just extend the gains further?
Amit Khurana: Well, it could very well be the case. We have seen liquidity and even the slightest corrections are being bought into and that has sustained pretty much longer than what we anticipated. The only caveat I would add is that India has outperformed by a very wide margin against all emerging markets. So, there is a case that this needs to normalise.
Now, whether it will be a case that other markets keep moving up and we do not move up to the same extent or we do an absolute correction is anybody's guess. Valuations in some markets are pretty stretched and therefore, the case for a serious level of outperformance for India from here in the near term, I mean to say, looks a little bit of a challenge. But over the the cycle, India remains the best emerging market to play over the next few years. But near term, some normalisation is required to get healthy market levels and price levels to enter.
What is the view on the chemicals basket? There is some fresh news flow that we are picking up that there is anti-dumping duty on one of the alcohol forms, IPA. This is positive for Deepak Fertilisers and Deepak
