ETMarkets Smart Talk- Consumer-oriented industries could produce next set of wealth creators in long term: Sujan Hajra
“Consumer-oriented industries have bright prospects, thanks to a strong GDP growth rate and a high rate of domestic consumption. As India's per capita income rises, the share of the wallet is shifting from goods to services,” says Sujan Hajra, Chief Economist & Executive Director, Anand Rathi Shares and Stock Brokers. In an interview with ETMarkets, Hajra said: “Unlike China, India has a balanced mix of domestic consumption and savings.
From being the world's 13th largest consumer market 20 years ago, India is now the world's 7th largest consumer market” Edited excerpts: Market seems to be consolidating after hitting record highs. What is your take on markets? Equity markets are notoriously volatile in the short term.
Trying to predict market levels in the short term is akin to flipping a coin. As a result, I would refrain from attempting to forecast market levels in the near term.
According to our analysis, there are five major factors that will determine the market's direction in the medium to long term. Four of these five factors, namely macro fundamentals, corporate fundamentals, money flow into the equity market from domestic sources, and money flow into the equity market from foreign sources, all support a positive outlook for the Indian equity market over the next year and a half.
The only factor that could cause concern right now is the valuation of Indian equities, especially in the light of earnings over the last 12 months and market momentum. To summarise, we have a positive medium to long-term outlook for the Indian equity market, but we do not rule out relatively minor corrections or a period of market consolidation in the near term.What is your take on RBI rate action? Inflation is clearly a concern for the
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