Market will continue to drift unless there is stimulus from government, says Avendus Capital
Andrew Holland, chief executive officer of Avendus Capital, on August 22 said that the Indian market will continue to drift unless there is stimulus from the government.
“There are a lot of research reports saying that if we take the bottom 40 of the Nifty, it is an index level of 9,000 or below, so there is lot value there but one is waiting to see what, if and when there is a package across industries which will help the market move,” he said in an interview with CNBC-TV18.
With regards to the auto space, he said the house is constructive on the auto sector. According to him, there are a lot of things the government can do like reduce insurance which was moved from one to five years.
He said India is not alone in talking about stimulus. “Donald Trump tweets about everything as a stimulus to keep his stock market higher and even Germany is talking about a huge one, so we are not alone in this because growth is slowing everywhere. So, why are we so worried about being fiscally prudent?” Holland asked.
When asked where they would look to put money into besides autos, he said, “We are just sticking to leaders in each of the sectors until one can see bit more light at the end of the long tunnel that we seem to be in.”
With the rupee on a downward trajectory, when asked if he would look at rupee sensitive plays like pharma and IT, he said, “I think the big call is when does the dollar weaken? That will be the time we will change what we think about the rupee and that is not far away, Trump anyway wants a weaker dollar, it is just not getting there at the moment.”
He said Sebi easing the FPI norms was a positive move but he “did not expect FPIs to rush in until we hear from the finance minister what will happen in terms of tax going forward.”
Source: CNBC-TV 18Subscribe to Moneycontrol Pro and gain access to curated markets data, trading recommendations, equity analysis, investment ideas, insights from market gurus and much more. Get Moneycontrol PRO for 1 year at price of 3 months at 289. Use code FREEDOM.