Sanjeev Prasad, MD & Co-Head, Kotak Institutional Equities, says “everybody likes the long-term story of India. People want to put more money to work into India, so now that whatever little uncertainty was there with respect to election results and the probability of a correction in the market has obviously gone down dramatically, probably it makes sense to jump in now rather than wait for something else to happen which may result in a break in the market and give an opportunity for investors to come in. ”
Will the bulls continue to smile or is it time to hold back your horses and say that this is a euphoria and euphoria really makes money?
Well, it depends on which part of the market you are looking at. If you are looking at the very largecaps or the megacaps, the valuations are still pretty reasonable and that is a part of the market where we have been highlighting investors to focus incrementally over the last two, three months now. The financial sector space has been a bit underperformer. The valuations are very reasonable there and even attractive in some cases.
Now, if you look at the rest of the market beyond the megacaps and the financial space, there is not much value left over there. The consumption names, pharmaceutical, IT are probably fully valued to fairly richly valued, I would say. So the scope of making money from here seems to be somewhat limited a bit about what our short term euphoria will be there and where the stock price may go in the short term.
Las