We are in mature bull market; there is relative value in IT and pharma stocks: Pankaj Murarka
Pankaj Murarka, CIO, Renaissance Investment Managers, says “The Nifty index trading at about 20 times current year earnings is reasonable in the context of the strong earnings growth that we are witnessing. From here on, much of the gains on the indexes are done and markets will be more stock specific in that sense. And some correction at this level is pretty healthy for the medium term health of the market.”
Going by the exceedingly volatile moves that we have witnessed in the broader markets, from the March lows first we have seen a meteoric rise and then yesterday, things were clearly shaken up. Is that an instance of the direction that the broader markets are headed in?
We have had a phenomenal rally in the last six months and so a correction was probably much warranted and it is a healthy correction for the market because there are pockets of markets where we have seen stock prices have clearly run ahead of fundamentals and there has been a fair degree of exuberance or froth in midcap smallcap space. So, correction is much warranted. Aggregate markets are still reasonably priced.
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The Nifty index trading at about 20 times current year earnings is reasonable in the context of the strong earnings growth that we are witnessing. From here on, much of the gains on the indexes are done and markets will be more stock specific in that sense. And some correction at this level is pretty healthy for the medium term health of the market.
What is the opinion on the various individual
