“The Nifty was ~18400 in Oct 2021 and is now up just 20% from those levels and largely tracking earnings. One can hardly call that a bubble,” says Harendra Kumar, Managing Director, Head-Institutional Equities & Global Research, Elara Securities India.
In an interview with ETMarkets, Kumar who has over 20 years of experience in financial markets said: “New age internet companies, Real Estate, financiers and wealth managers – will see a good decadal rally,” Edited excerpts:
We have seen quite a bit of volatility in markets post-budget but the good news is that Nifty managed to hold on to crucial support levels. What is your take on markets – is it profit-taking after the recent run-up?
Harendra Kumar: For the headline index – we see no risk, as there has been hardly price appreciation in the headline index.
The Nifty was ~18400 in Oct 2021 and is now up just 20% from those levels and largely tracking earnings. One can hardly call that a bubble.
Volatility is seen in stocks or indices that have had a euphoric run recently viz the PSU index largely and the small and mid-cap stocks.
The collective wisdom of the market tests the direction of the trend time and again through shakeouts – and has weathered it well. For now, the markets are well and truly on the upward