ETMarkets Smart Talk:โค insights from Manis on Markets, Earnings, and Investment Strategy
In a recent interview with the Economic Times, Manisโ shared their โฃperspective onโ theโค current market landscape, recent earnings reports, and potential investmentโ opportunities. Here’s a breakdown of theโฃ key takeaways:
On US Rate Cutsโค & RBI policy:
While acknowledging the influence of US Federal Reserve policy on โคindian interest rates, Manis believes โthe primary driver for Indian rates will โขbe the significant improvements in both the currentโค account and inflation outlook. The current account is nearing structural balance, and inflation has not only decreased but also become less โขvolatile compared โขto the lastโค decade. This suggestsโค a potential trend of lower long-term interest rates in India.
Earnings Season Review:
The recentโ earnings โseason for Nifty50 companies hasโค been characterized asโค neither exceptionally strong nor weak. The focus now shifts โto the impact of domestic fiscal and monetary stimulus on medium-term โขconsumption strength.โข Positive signs are emerging in sectors like automobiles,and optimismโฃ surrounds potential developments such as reduced US-India tariffs,Payโข Commission recommendations,and โคcontinued rate cuts.
Potential Risks to Watch:
Looking ahead, Manis identifies two primary global risks. โขThe first is the โขhistorically low level of โคcredit spreads globally; a credit market disruption could trigger a “risk-off” โhabitat. The second is the considerable capital โinvestedโ in Artificial Intelligence (AI) – a failureโ of AIโค adoption to meet expectations could โฃput โsignificantโข investor funds at risk.
Attractive Sectors:
Manisโฃ highlights several sectors as currently attractive:
* Lending Financials (Banks/NBFCs): Despite concerns about credit costs, theyโข anticipate โคa domestic economic recovery and improved householdโ balance sheets โ(supported by increased gold โขholdings) will mitigate potential credit risk.
* Tech Platforms: They are interested inโข tech platforms โคwhere market capitalization remains relatively low compared toโฃ their potential addressable market.
* Affluent Consumption: This sector isโ viewed โas a strong, ongoing structuralโ growth story.
* metals: metals are identified โฃas an engaging tactical opportunity.
New Listings & IPOs:
Manis maintainsโ an open mindโ towards โคnew listings,โ acknowledging the limited information available compared to establishedโ companies. However, they are willing to consider IPOsโข if the โคrisk-reward profile is favorable. โฃThey emphasize โthat a generalized preference for โprimary versus secondary โmarkets โisn’t sensible, advocating โฃfor individual evaluation of each investment opportunity.
Precious metals โAllocation:
From their perspective, aโ reasonable allocation to โคprecious metals makes strategic sense.
Disclaimer: Theโค views and opinions expressed by Manisโค are their โขownโฃ and do not reflect the views of the Economic Times.
