Temporary slowdown could give way to broader market growth: Mahesh Patil
«I would say that the broader trend for the market still looks up because one would believe that the slowdown what we are seeing is temporary cyclical slowdown, to some extent impacted because of the government spending in the first half has been weaker because of elections and it took time for the ministries to be formed so that is now gaining momentum,» says Mahesh Patil, CIO, Aditya Birla Sun Life AMC.
It has been pretty much more of the same, this phase of consolidation that is kicking in. Do you believe that the undertone of the market is still looking bullish and that, yes, there may be speed bumps along the way, but by and large, we are okay?
Mahesh Patil: We have seen the momentum clearly has kind of broken down what we saw earlier. And not only the market it is more to do with the earnings momentum. So, the strong earnings growth what we saw in the last three years until FY24, so that in the last two quarters has kind of slowed down and for the first time we have seen downgrades to earnings after the second quarter and the first quarter numbers. So, clearly there is some bit of a slowdown and that is leading to a sluggishness or even for the matter we have seen that the market breadth also has weakened quite a bit. Now that is kind of coming back.
I would say that the broader trend for the market still looks up because one would believe that the slowdown what we are seeing is temporary cyclical slowdown, to some extent impacted because of the government spending in the first half has been weaker because
