Banking sector offers buying opportunity amid FPI sell-off: Nilesh Shah

«Gold looks on a better footing. It has delivered great return like equity, but we will have to realise whether we will be able to liquidate gold or not,» says Nilesh Shah, MD, Kotak AMC.


Gold and Nifty have given similar returns. I mean, why are we doing so much of analysis every day? So much of volatility. We look at macro, we look at rupee, we look at earnings, we look at PE. Life is so simple. Just buy gold, forget it.
Nilesh Shah: So, we will have to figure out when Indians decide to sell gold, who will buy. Today, gold prices are up because we are one of the largest buyer. Fortunately, for India, central banks of the world have become like our housewives.

They have realised that keeping money in dollar, yen, euro, renminbi, securities is risky, as Russian central bankers have realised. Now they have joined the bandwagon and they are buying gold as much as Indian housewives are buying. So, yes, undoubtedly, gold looks on a better footing. It has delivered great return like equity, but we will have to realise whether we will be able to liquidate gold or not.

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Now, the point is, where do you go from here? I mean, we always talk about equity markets, but let us first understand where is the earnings and economy headed and is it now time to be optimistic because the macro, the data points in terms of tax collections, oil, dollar index, the macro is getting better now.
Nilesh Shah: So, it is not about macro going down or earnings not growing. It is all about meeting expectation. At 22 times forward,