Market has bottomed out for 2024, expect gradual recovery ahead: Sandip Sabharwal
Sandip Sabharwal, asksandipsabharwal.com.
Quickly, your reaction to it, because what Nikunj was also talking about was that there could be a sentimental impact of what numbers we have got today. And clearly, this indicates that continuity of policies and reforms in a state which is a key contributor in many fronts now. Can there be a possibility that we can look at from this aspect that this could be a confidence booster and there could be some stop to FIIs relentless selling now?
Sandip Sabharwal: There are two parts to the question, what FIIs will do and what the markets will do. So, from the market perspective and from where the markets are positioned, my view was that Thursday when the entire Adani controversy broke out, we could get a panicked bottom formation there as long as the Maharashtra election results did not go against the ruling combined. And the election results indicate that not only the majority has been retained but with a much wider mandate, which indicates that the people in general are happy with the economic policies and there will be continuity in policy.
And Maharashtra being the second largest state in the country, a mandate like this from here also reinforces the entire growth story of the country. So, I would think that it would be taken positively and it has come at a time when markets are not at all-time high.
The market has seen an up move down 12-13% from the top and to that extent I think it indicates to me that we could have made the bottom for 2024 and from here on
