Macquarie’s Thought On Current Market Trends

As the market hits record highs, skeptics have been raising concerns on valuations. However, Sandeep Bhatia, Head Equity-India at Macquarie Securities Group sees no mega correction on the Street that could bring down valuations.

“We are in the range where the market will continue to give you good performance,” said Sandeep Bhatia, Head-Equity, India, Macquarie Securities Group in an interview to CNBC-TV18.

Unless there is a major change in the earnings, which are more likely to surprise positively, and its trajectory, this trend will not stop, he said. If the market corrects due to GST, then it would be a buying opportunity, he added

Bhatia expects good monsoon to have a better impact on the rural economy. “Rural cycle is a multi-year one. The recovery story will last longer and we continue to bet on that,” he told the channel.

FMCG stocks, he believes, will continue to be expensive till other sectors start performing.

NBFCs, too, are face problem of high valuations. “You have to be mindful of quality and valuations,” he said. Cholamandalam Finance and Shriram Transport Finance is a good play, he added.

For the real estate sector, he sees worst time being over for it. In fact, he sees large amount of employment coming from this section.

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