Siddhartha Khemka, Head of Retail Research, MOFSL, says “while the base would catch up and the pace of growth would marginally come down, we see strong earnings growth momentum which would continue to drive stocks and hence we do not have a cash call right now. Earnings for several sectors which have been sluggish for the past several years, have been picking up. These are sectors like automobiles, real estate, capital goods, infra, industrials, utilities, hotels.”
What is the portfolio strategy right now? Is it time to book some profits, keep some cash dry on the side, or would you continue deploying fresh money in individual stocks?
Siddhartha Khemka: The overall view on the market continues to be strong and positive. In terms of earnings, the earnings momentum has been pretty strong in the first half. H1 of FY24, we have seen a 30% earnings growth in the Nifty earnings and the overall asking rate for the full year is still in excess of 20%. So, while the base would catch up and the pace of growth would marginally come down, we see strong earnings growth momentum which would continue to drive stocks and hence we do not have a cash call right now.
We believe that there are various sectors where the valuations are comfortable, the earnings are picking up. So, if you take the example, earnings for several sectors which have been sluggish for the past several years, have been picking up. These are sectors like automobiles, real estate, capital goods, infra, industrials,
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