Here's why Ajay Bagga is bullish on two-wheeler stocks
«There is some softening globally, but India is performing very well on the macros. The balance sheets are very clean for corporates. Banks have the ability to lend,» says Ajay Bagga, Market Expert.
What do you make of the momentum of the market, there is no stopping it at all?
Ajay Bagga: Yes, flows are very strong and we see that domestic flows are absorbing. Even the little FII selling that is still coming through, we are seeing that absorption happening.
So, the domestic flows, I would say, is the first factor and then you add on, the global cues are quite benign now. We are in a strong rate cutting cycle. The Swiss Central Bank also cut rates today. So, globally, we are seeing monetary stimulus coming into the economies.
There is some softening globally, but India is performing very well on the macros. The balance sheets are very clean for corporates. Banks have the ability to lend.
So, we are sitting on a good place in terms of macro, in terms of corporate earning strength, in terms of banks' balance sheets being clean. And on top of that, domestic flows are coming in. So, we are comparable in terms of flows to a US of the 1980s, when Ronald Reagan brought in 401K accounts or China of the early 2000s, that is the kind of scheme that India is seeing right now and that is lending a lot of strength to this market rally.
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