There is room for at least 20-25% upside in PSU stocks: Siddhartha Khemka

economictimes.indiatimes.com:

Siddhartha Khemka, Head-Retail Research, MOFSL, says “the quarterly results would be the next trigger for the market. In terms of overall valuations, we see that markets are comfortable, especially the large caps. The Nifty is trading at a one-year forward PE of 19-19.5, which is still at a discount to its last 10-year average of 20 times. We see there is room for the market to move up given that quarterly results or the corporate earnings have been pretty strong and that continues to be the case.”

What is your view on the market itself, the start has not been the most euphoric because we have been consolidating. Do you think this is going to be the nature at least for the next few weeks or months going forward that there would be a bit of sideways move?
Siddhartha Khemka: If you look at the market view, after two consecutive months of sharp up move, Nifty moved by almost 5% in November, followed by 8% move in December. The start of the year has been a bit sombre because the market is waiting for fresh triggers. There were the meeting minutes from the Fed, which gave out some clarity as to when this Fed rate cut could happen, which has excited the market the most in December.

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The quarterly results, which would start coming in and that would be the next trigger for the market. In terms of overall valuations, we see that markets are comfortable, especially the large caps. The Nifty is trading at a one-year forward PE of 19-19.5, which is still at a discount to its last