ETMarkets Investors’ Guide: Banks, Cement and Metals Delivered Q1 Earnings Surprises
Markets rebounded last week on strong quarterly results globally and hopes of a slower pace of Fed rate hikes. A slump in crude oil prices, a recovery in the rupee and the fact that foreign equity flows to India turned positive in July after nine months all boosted investor confidence. The fact that earnings downgrades have been limited so far this season and the RBI’s comment suggesting inflation may have , also add to the bullish view.
ETMarkets caught up with Suresh Soni, CEO, Baroda BNP Paribas Mutual Fund, to find out how he views ongoing valuations, reasons for the recent rally and risks ahead for the quarter. Soni also discussed his views on likely winners in the next leg of the market rally and trends in the mutual fund industry.
What’s behind the recent optimism in global markets?
1. How would you rate the earnings season so far? Negative or positive surprises in the Nifty50 pack?
2. On a broader Nifty50 basis, earnings downgrades in the first quarter earnings season are still not material. But given the recent rally, do you think valuations are getting rich again?
3. We have seen the banking sector as a group making strong gains lately. Which sectors do you think can lead the next leg of the rally?
4. Investors around the world expect the pace of Fed rate hikes to slow. What do you see emerging as a major risk for domestic equities in the coming months?
5. What is your opinion on mid and small caps as a pack? How to approach this pocket?
6. We are seeing the launch of a lot of NFOs, including your own FlexiCap fund, do you think there is enough liquidity and demand for MF investments in the current scenario?
Thanks Mr. Soni for the ideas.
That’s all in this week’s special podcast. Keep checking this space for more interesting content and take the time to follow our market podcasts twice a day. Stay safe and have a nice weekend!
(Disclaimer: The recommendations, suggestions, views and opinions given by the experts belong to them. These do not represent the views of Economic Times)