ETMarkets Smart Talk- Multibagger stories are likely to emerge from Atmanirbhar theme such as defence, capital goods & infra: Santosh Pandey

economictimes.indiatimes.com:

Atmanirbhar type of stories like Defence/ EMS/ Infra and Capital goods,” says Santosh Pandey, President & Head, Nuvama Professional Clients Group. In an interview with ETMarkets, Pandey said: “Large Cap banking names is certainly overbought based on earning growth perspective, plus some pockets of SME market are heated” Edited excerpts:Market seems to be consolidating after hitting record highs. What is your take on markets? Market generally does not move in one secular direction.

There would be bouts of strong up moves and sometimes sharp down moves along with consolidations. Currently in this rally, the market has moved pretty fast since April 2023 low and the current consolidation would be very healthy for the market. With INR 1070 FY25E EPS market was trading at 19x for 18 months' earnings which was a bit on the higher side, plus recent inflation print globally are keeping limited scope for PE expansion.

However, this consolidation is good for 2-3 years from investors' perspective.What is your take on RBI rate action? The RBI in its recent policy meeting kept the interest rates unchanged at 6.5% and continued with its stance as ‘withdrawal of accommodation’ with a 5:1 vote. Overall the RBI maintained hawkish rhetoric in response to rising inflationary risks (particularly food inflation). This was also underscored by the significant upward revision of the inflation forecast to 5.4% for FY24 (from 5.1% earlier) and the decision to introduce a 10% incremental CRR for banks.