Market will continue to move sideways with some sector rotation: Seshadri Sen
«We do not see any major upheaval in either direction negative or positive in the second half. Earnings are probably the most stable we have seen in the last two or three years,» says Seshadri Sen, Emkay Global Financial Services.
Well, I am just going through your latest note and it seems like you have raised your target for the Nifty all the way to 26,000 now for September 25. Earlier it was close to 22,000 for June 25. Is it just the market momentum that has made you change it because we are very close to that mark already or do you see a further uptick in the fundamentals versus what you anticipated earlier?
Seshadri Sen: No, the primary driver is that there were a few speed bumps that we were anticipating in the first half and those played out. The market through those speed bumps quite strongly. But we are looking at a much smoother ride in the second half in terms of fundamentals which is why we raised our multiple and that cascaded into a raised Nifty target.
We do not see any major upheaval in either direction negative or positive in the second half. Earnings are probably the most stable we have seen in the last two or three years.
Upgrades and downgrades are not moving significantly upwards or downwards. Valuations are a little elevated, but if you look at India's macro financial stability, that does warrant a somewhat premium valuation.
So, all these combined, yes, we raised our target price and our view is that the market will continue to move sideways in the foreseeable future and with some level of
