ETMarkets Smart Talk: NBFCs could lead next leg of bull run on D-St, explains Shrikant Chauhan
“In the next bull run, I guess that NBFCs might perform well. Fundamentally, upside potential is a minimum of 15% to 20% in most of the NBFCs,” says Shrikant Chauhan, Head of Equity Research, Kotak Securities.
In an interview with ETMarkets, Chauhan said: “If the interest rate cycle starts turning downward in the 2nd quarter of FY2024 then there could be a specific buying interest in the sector,”. Edited Excerpts:
Markets have started picking momentum after the initial fall despite geopolitical concerns. What is your take on markets?
Shrikant Chauhan: Post some dip in March 2024, the equity markets have regained momentum. India’s macro-economic data points like GST collections and manufacturing & services PMI have been healthy.
Furthermore, India’s latest CPI inflation reading showed moderation as compared with previous month. In line with expectations, the RBI MPC kept repo rate and retained its real GDP growth projection of 7% in FY25.
Unlock Leadership Excellence with a Range of CXO Courses
Offering CollegeCourseWebsiteIIM LucknowChief Operations Officer ProgrammeVisitIndian School of BusinessISB Chief Technology OfficerVisitIIM LucknowChief Executive Officer ProgrammeVisit
As per the IMD, India is expected to have an above normal monsoon season (106% of the long period average) and that can boost the rural economy.
In the near term, market participants will watch out for the outcome of the general elections. With Q4FY24 results season underway, stocks will continue to react to financial performance and
