Gautam Duggad on 4 sectors which have good long growth prospects
«You add another 5-6% because there are a lot of large companies which are not part of the Nifty, which are recent listing of last two-three years. So, I would still say 65% of the total market cap is still either in line or slightly below long period average,» says Gautam Duggad, Motilal Oswal.
How much of this market cap is right now trading below the average and how much of the market cap is above the average?
So, if you look at it this way, I mean, for a simplicity purpose, just use Nifty 50 as a benchmark for your large cap. And I said Nifty is in line with its long period average, maybe 4% or 5% lower than long period average and Nifty is roughly 60% of India's market cap.
You add another 5-6% because there are a lot of large companies which are not part of the Nifty, which are recent listing of last two-three years. So, I would still say 65% of the total market cap is still either in line or slightly below long period average.
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It is a great point. Market sasta hai.
Secondly, a lot of times we keep getting carried away because 20,000 is a new level and a big milestone, that market is at a new high, market is at a new high. We have never seen headlines which says corporate profits are at a new high.
But that they will always keep on making high?
Similarly, markets will also follow that corporate profit. We never say GDP is at a new high. Everyday media does not write a headline that corporate profits today are at a new high. But because markets are tracked on a daily
