ETMarkets Smart Talk- Future IPOs could come from defense, semiconductor manufacturing and EV space: Roop Bhootra

economictimes.indiatimes.com:

“There is enormous opportunity arising in Defense, semiconductor manufacturing, EV, Renewables and contract manufacturing and a lot of small to medium companies have started to operate in these areas, and these companies could well be future candidates for IPOs,” says Roop Bhootra, CEO, Investment Services, Anand Rathi Shares and Stock Brokers. In an interview with ETMarkets, Bhootra, said: “Investors should always deeply study the companies and the valuation it is demanding before applying in new IPOs” Edited excerpts:We are seeing some nervousness at record highs for Mr. Market. How do you see things moving – have we hit the top for the moment? We are in the middle of the earnings season and about 30 out of 50 companies have declared earnings so far, and in index weight terms, it is about 70%.

The results have been decent so far and if we look at the domestic-focused sectors then it is good. Currently, markets have seen a sharp runup leading into the results season and now trading at reasonable valuation.

In terms of earnings, the consensus is confident of high teen digit growth of between 17-19% for the next two years so that should continue to support the markets. Overall, we don’t see any major downside in markets from a long-term perspective but since the recent run-up is sharp; hence, in the near term one should remain cautious and let the earnings catch up.

Having said that, global risk continues to remain high and could be more likely the reason for any downside than domestic factors. Interestingly the US Fed is open for further rate hikes. Do you see that could dampen the bulls party on D-Street? Rate hike does have an impact on the markets as it increases not only overall cost of funds for the corporates