Government spending and liquidity easing to spur growth: Satish Kothari
«We expect pickup in government-led spending and easing of liquidity, which will start aiding growth from next quarter onwards. Last 18 months to 24 months, we have seen a lot of stock run up and sectors run up in Indian markets,» says Satish Kothari, SageOne Investment Advisors.
In the last two months, we have seen a 3000 points correction in the benchmark and a recovery of nearly 1000 points from the lows. So, how are you positioning yourself amidst such volatility? What is your market view at current juncture if you could just take us through that?
Satish Kothari: The Indian markets have cooled off in the last two months primarily driven by Q2 FY25 earnings, which were quite weak and FIIs selling and rising geopolitical uncertainties. The broader outlook for near-term continues to be a bit uncertain, driven by external global environment and investors will watch out for how Q3 FY25 earnings pans out for corporate India. However, when we look at Indian macro environment, it continues to be strong and stable.
We expect pickup in government-led spending and easing of liquidity, which will start aiding growth from next quarter onwards. Last 18 months to 24 months, we have seen a lot of stock run up and sectors run up in Indian markets.
From here on, our view is that market will favour stocks with high earnings and predictable earnings growth. So, we continue to prefer pockets where there is resilience and superior growth from our perspective.
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