ETMarkets Smart Talk- Sensex at record highs! Anti-Consensus rally emerges amidst challenging policy landscape: Harendra Kumar

economictimes.indiatimes.com:

“This rally has all the characteristics of an anti-consensus rally. It has come in the face of an adverse policy backdrop globally and soft growth outlook in the developed markets,” says Harendra Kumar, Managing Director, Elara Securities India.

In an interview with ETMarkets, Kumar who has over 20 years of experience in the profession and has built several highly successful and profitable sell-side businesses, said: “Market will get sure-footed only if this earnings season adds fuel to its optimism or we may be in for some more time correction” Edited excerpts:Sensex, Nifty hit fresh record highs. Where is the market headed? This rally has all the characteristics of an anti-consensus rally.

It has come in the face of an adverse policy backdrop globally and soft growth outlook in the developed markets. Domestically, the RBI policy has put a lid on the optimism of a sharp rate-reversal cycle which was driving up some of the rate sensitives.

Market will get sure-footed only if this earnings season adds fuel to its optimism or we may be in for some more time correction. What is the kind of impact you see on sectors after PM visit to USA? Do you think Make in India could get some additional boost? The manufacturing eco-system is being catalysed and the PLI incentivised sectors such as semiconductors and defence will get a fillip.We are closing 1H2023 with gains of about 5% on benchmark indices. Where do see the markets in 2H2023? Another 10% from here is not an unreasonable expectation as the tailwinds of recovery of FII flows should continue to aid some of the heavyweights.Realty, and Capital Goods indices saw maximum traction with gains of over 20% in the first 6 months – do you see the momentum continuing? Capital Goods