Top 8 Questions With : Siddhartha Khemka, VP - Research at Centrum Wealth Management Ltd
Updated on: 13 Jun 2016
With corporate earnings now turning around, along with the expected growth in the economy, the equity market is likely to do well. The intermittent volatility, due to various global and local factors, should not deter long-term investors, said Siddhartha Khemka, head of equity research (wealth), Centrum Broking, in an interview with Ravi Ranjan Prasad. "Niche NBFCs (housing finance, micro finance, consumer finance and others), consumer discretionary, auto, construction, engineering, procurement and construction (EPC) players, power transmission & distribution, cement, specialty chemicals and niche textiles are looking good from an investment point of view," Khemka said. Excerpts:
How is the equity market poised in the short-term in the backdrop of monsoon predictions and global events like the US Fed rate hike and Brexit?
Though India's long-term fundamental story stays intact in the short-term it could react to the above-mentioned events and is expected to remain range-bound to marginally positive. While the consensus does not expect the US Federal Reserve to hike rates at its forthcoming meeting and there is lack of clarity on Brexit, if either of the events were to happen that could lead to a knee-jerk reaction in the market. Global markets could get a bit jittery and India could follow suit. The monsoon is likely to be above normal after two consecutive years of poor rains. This is good news for the market. Corporate earnings are now turning around and that's also a reason to cheer. So if the Indian market reacts negatively to any global event, it won't be a reason to panic but an opportunity for long-term investors to buy.
Do you see the rising crude oil price as a threat to the Indian market? How do you see the domestic oil and gas stocks getting impacted?