Tech stocks a long-term play despite recent corrections and valuation fluctuations: Ajay Argal
«There could be some pickup in consumption because we are kind of seeing a subtle shift of the market driver from the investments to the consumption,» says Ajay Argal, Franklin Templeton.
So, what could be the turn moment for market? Could it be just time, you have to just wait it out, this year will be a tough year, nothing happens, but then after six months suddenly markets will look attractive, earnings would kick in. I mean, do you think this market will have to just grind itself?
Ajay Argal: So, that is one way of doing it. Yes, so that is what you are referring to is the time correction and I mean, if you look at Nifty for example, we might be 5% or 10% above the last ten-year averages or the five-year averages in terms of valuations.
So, in that sense only that kind of correction is required and if there is a 15% growth, then yes we are talking about six to nine months of time correction if the actual correction does not happen.
Whereas in the midcaps, it might be a bit more, smallcaps also there might be some higher correction compared to the larger caps so the higher correction could mean a higher waiting period.
But on the other hand, there could be some pickup in consumption because we are kind of seeing a subtle shift of the market driver from the investments to the consumption.
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