Capital formation, manufacturing & payments to benefit from past reforms: Santosh Kumar Singh

economictimes.indiatimes.com:

Santosh Kumar Singh, Fund Manager, Motilal Oswal AMC, says “I still find IT very attractive, I am very bullish on capital markets and I think that the biggest financialisation is going to get played through the capital markets. Also, health has been a place where the market has been very, very bearish for multiple reasons. I think it is a space which has got very high longevity. And at the same time, this is a space where the competitive edges of the company can stay for a very long period of time. So yes, those are the two spaces I am really liking.”

Talk to us about the valuation of the market. What went through your mind when you were looking at the screen the day before yesterday? All of us thought that the much-awaited correction, cleansing of froth would happen. But we barely corrected for a day and everything came back?
Santosh Kumar Singh: Yes, so see if I am looking at the market, it seems the valuation is inching closer to one standard deviation on the Nifty side, right. And that is where my view is. Above that, I do not see a re-rating. Above that, a lot of froth starts to pick in so I am not expecting it to go above that. That is where the EPS growth of the market comes into play. The EPS growth seems to be doing okay, around 13-14% EPS growth for the next couple of years. So the market may give that sort of return.

Unlock Leadership Excellence with a Range of CXO Courses

But yes, in my view, there is not going to be a huge rating from here on. And on a daily basis, I do not know what happened the day before and why