Private Banks, IT poised for revival; cement sector to emerge as a dark horse: Rupen Rajguru
«There will not be a wide across the board earnings growth. There will be pockets which will show growth and which is where the market will look into,» says Rupen Rajguru, Head of Equity Investment & Strategy, Julius Baer.
What is the market telling us in the sense that there has not been any incremental negative news flow as such, but it is not taking off? Do you think the interest in the overall markets is on the lower side or is it just time-wise consolidation that we will have to deal with?
Rupen Rajguru: As you said what is the market looking for. So, while you said that there is no incremental negative, but at the same time there are no incremental positives. So, usually, we had this phenomenal bull run between 2020 and 2024 wherein the earnings compounded more than 20% plus for largecaps and 25% plus for midcaps and 30% plus for smallcaps.
So, now, while other things remain constant, what we are clearly seeing a slowdown in earnings and that is also getting reflected in the market prices. So, to answer your question, in the near term, earlier, the theme for the market was catch everything which was moving.
Now, the theme would be consolidation because earlier, everything was moving up, earning was going strong. There will not be a wide across the board earnings growth. There will be pockets which will show growth and which is where the market will look into. So, in the near to medium term, we expect market to consolidate and probably we are at 24,000-24,100 level, which is kind of the fair value, closer to
