Outlook 2025: FMCG a space to avoid; you can bottom fish in Bandhan Bank, says Varun Saboo
Varun Saboo, Head-Equities, Anand Rathi Shares, says there is no reason why Nifty should trade anything below 18 times in general. He does not see those times coming back where we go down to 15 times earnings. Because whatever said and done, our growth rates are much better than any country in the world, so that premium, that multiple to peg will remain and the Nifty will remain firm. However, one has to see how the Jan and next earnings season pan out.
Among the biggest losers among banks in 2024, one can bottom fish in Bandhan Bank next year.
Towards the fag end of the year and perhaps the start of the new year as well volumes, cues, are going to dry up and then will come the January earnings followed by budget, etc. What do you think the market construct is going to be? Will this kind of volatility persist or is it going to become more lacklustre with the drying up of volumes?
Varun Saboo: There are two-three things which you are talking about.
One is about how the flows in December should have been and how they are. Till date, I have not seen volumes drying up. This is a very different phenomena versus other years that we have seen.
During this time, post the second week, you generally see volumes drying up, but that has not happened yet. So, it is a very different trend from that perspective.
Secondly, will the volatility continue? In a scenario where global inflation is bothering say the US and the west and in a scenario where in India earnings have been a little shaky for the last quarter and visibility not being that great in the near term also, it is going to be quite a mixed bag of whatever we can understand from whatever we are doing our research on.
