No structural downside, liquidity to cushion market dips: Mayuresh Joshi
Mayuresh Joshi, Head Equity, Marketsmith India, says the markets are fearing a possible escalation in the Middle East conflict. In the Indian context, earnings might be a tad bit soft going into this quarter's numbers as well. But with good monsoon, expectations of rural recovery, second half should be relatively better as far as India Inc is concerned. So, Joshi is not looking at a structural downside. Liquidity remains strong and for any fall in the market that comes through, liquidity might come back and cushion them.
It is getting bad in the market, could it get ugly?
Mayuresh Joshi: There are two-three angles. One, obviously, in terms of how global macros are shaping up. The expectations in terms of the China stimulus has clearly buoyed sentiments in terms of foreign flows towards China. Again, undervalued, under-owned and therefore, the kind of move that we saw on the Chinese markets because of the stimulus was something to be watched out for.
The second element, is the US data points as well from a macro standpoint, have been relatively stable so far. So, all indicators are probably indicating that data points should be reasonably stable enough going forward. Even in the earnings context, our US team feels that earnings might be a little bit soft as far as Q2 and Q3 numbers are concerned.
But Q1 of the next financial or calendar year will also probably start indicating better earnings coming in for a large part of US Inc. The Japanese change of leadership created some jitters as well. But again, the
