India could be a breakout emerging market for the next decade: Nirav Sheth
«I have been very constructive on software for a while now. And the underlying hypothesis is the fact that we generally believe that inflation was always a supply side problem,» says Nirav Sheth, Emkay Global Financial Services.Let us start with technology then. Do you think technology space has bottomed out or not yet? I have been very constructive on software for a while now.
And the underlying hypothesis is the fact that we generally believe that inflation was always a supply side problem. And we have been very-very surprised with the resilience of the US economy. So you come down, the CPI inflation is down from 9.5% to 4%.
And the unemployment rate in the US is at about 3.4%, which is a five-six decade low that is simply amazing. I suspect that as you move into the next quarters. So software to us is a macro trade.
I think even the CEOs are not going to get it right. I think you will start seeing earnings upgrade happening sometime in the third and the fourth quarter of the season. Simply because the US is doing so well.Very, very simple point. The US is doing not as bad but actually well. Better than what the studies are estimating. And no point exiting or taking a negative call on the software space from current levels. What about pharma? Is it too late to latch on to pharma or it is right even at this juncture? And what are your top picks if you could share as a house? For pharma, we believe that we are more of a market performer.
And it is very difficult to categorise pharma because there are a lot of bottom-up stories over there. But the thing is that when you want to take a call on India for the next two, three, five years, this is largely the story around domestic consumption. This is largely a story around
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