CIO Patil sees low teens 2018 growth for Nifty
Canada Goose Outlet Considering the government’s long term vision, and the trend set through earlier budgets, the focus of the upcoming Union Budget is likely to remain largely on infrastructure and the rural economy, believes Mahesh Patil, Co Chief Investment Canada Goose sale Officer equities at Aditya Birla Sun Life Mutual Fund. Canada Goose Outlet
Canada Goose Online In an exclusive interview to Moneycontrol, Patilsaid that investors should not expect a repeat of 2017 in terms of returns, since the Nifty returned as much as 29 percent canada goose clearance in the year. It is unlikely to happen again in 2018. Canada Goose Online
What Patil expects is a 12 15 percent return in the current year and a similar kind of canada goose coats uptrend is likely to continue in 2019and 2020 as well. Aditya Birla Sun Life Mutual Fundis upbeat on sectors such as automobiles, consumer durables, telecom and rural themes for investments.
canada goose clearance sale We saw a good run up in 2017. How do you see markets panning out in 2018? canada goose clearance sale
canada goose uk shop 2018, as we step forward into this new calendar year, things are looking much better. A lot of things have fallen into place. Last year, we went through ups and downs. The economy took kind of a beating, but the gains of all the reforms would start to unfold and we are expecting a pretty good recovery back in corporate earnings. canada goose uk shop
Global outlook continues to remain fairly stronger than it was after the global financial crisis. So, all these tailwinds should continue to favour the markets. Since we did very well last year, the return expectations would probably have to be moderated down now because we are starting from a higher valuation level and to that extent, the market returns this calendar year would probably be muted compared to last year. But still, our view is that returns should be fairly good for investors to look positively at equities compared to any other asset class.
canadian goose jacket So, what kind of returns canada goose can we expect from the market this buy canada goose jacket year? Can we see double digit returns? canadian goose jacket
uk canada goose Yes, we should expect around low teen returns for the market. That would be a reasonable expectation, buy canada goose jacket cheap though markets are known to surprise. But more importantly is that the outlook is now starting to look better and canada goose clearance sale looks to canada goose deals be slightly more sustainable because of the foundation that is being set and the big reforms that we have seen. Canada Goose Outlet So it is more about sustainability of macro fundamentals canada goose coats on sale is what is Canada Goose Parka important. uk canada goose
canada goose uk outlet Do you think FIIs will continue pumping money into Indian equities? Last year, FIIs were selling equities aggressively and DIIs supported markets canada goose uk outlet
canada goose clearance No, what had happened last year is that when you compare to India, Indian growth was actually slowing down whereas global growth was picking up. So, a lot of the other markets were looking better in terms of growth and in terms of valuations. So relatively, FIIs have preferred some of the other emerging markets. But, now with growth starting to look better, earnings growth is picking up again because of the big reforms. canada goose clearance
Even in the banking sector, we have seen bank recapitalisation and resolved NCLT and the IBC (Insolvency Bankruptcy Code). So, you would see the confidence coming back, FII flows would start to again start to turn positive as we step into this calendar year. So we have probably lagged the global growth by around 3 4 quarters because of the transition we are growing through, that will catch up in this calendar year.
In the last two years, we saw RBI cutting interest rates. So do you think RBI will continue that trend or can we expect a rate reversal this year?
Canada Goose Parka Our view is that we might not see any large cuts from now on, as inflation should remain into the RBI’s targeted band. There is some upside risk in the near term because of oil, but it should be in that band. We are expecting growth to improve but at the same time we are not expecting a very strong growth cheap Canada Goose than gradual. So no rate hikes are expected, although the markets have started talking, but we do not expect any reversal. We expect a pause at best in terms of rate cuts. Canada Goose Parka
buy canada goose jacket According to your presentation GDP, growth will be more than 7 percent in FY19. Is that achievable? buy canada goose jacket
canada goose coats on sale Yes, it is fairly achievable because the growth was pulled down because of reforms. We are seeing some recovery in capital expenditure, at least private sector capex will slowly start to pick up, though not in a big way. But at least the lower end will and rural consumption is canada goose store moving up. Global growth is also fairly strong. So, even the net exports should be fairly good. So 7 percent GDP growth, considering all these factors, should quite be possible. canada goose coats on sale
Have you startedincreasing stake in PSUbanks now that government has been taking steps to curb NPAs?
Canada Goose sale So, while recapitalisation is good for the Canada Goose Jackets banks, clearly the banks need to do more in terms of being able to improve the way they function in a fairly competitive environment, look at their costs. Canada Goose sale
canada goose factory sale We think that clearly some of these pain points, which stunted the growth of some of these banks, I think have eased off, but big value in PSU banks will be only created if there are some reforms in the banking sector. I think ROEs and this thing would still remain fairly low. canada goose factory sale
Canada Goose Coats On Sale So, except for few banks, the larger onesthat have got stronger balance sheet and a credible top management, we don’t see a the broader PSU bank basket really to do that well. So, it will still remain a focus with a select PSU banks. Canada Goose Coats On Sale
Canada Goose Jackets Mid caps delivered around 50 percent returns in 2017? Can we expect the party to continue in 2018 as well? Canada Goose Jackets
canada goose No, we are saying they will go higher and the risk rewards for largecaps looks favourable compared to midcaps. Midcaps have rallied, but midcap in absolute terms will still continue to give returns though the volatility and the risk in the midcap would be slightly higher. The margin of safety is now less. canada goose
canada goose store Do you think earnings revival is really achievable in FY19? Most canada goose black friday sale experts are expecting 15 20 percent earnings growth. canada goose store
uk canada goose outlet We are looking at 20 percent returns by FY19 and it is achievable because as I said, a lot of sectors which were dragging the earnings, clearly we canadian goose jacket are seeing change. Like corporate banks, pharma sector, telecom sector. uk canada goose outlet
Also, the benefits of GST, lower tax rate, the deleveraging that we are seeing in corporate India, all of that will support. The overall global outlook is also fairly good. Now, the commodities and global cyclical sectors will also do fairly okay. So, I think it is because of the broad based recovery, earnings will recover across sectors rather than relying on a few sectors. It makes us more confident about cheap canada goose earnings growth in FY19.
buy canada goose jacket cheap What are the global risks over the next 1 2 years? Are you seeing any signs of US going into recession? buy canada goose jacket cheap
canada goose black friday sale US no, not recession. Yes, further, stricter rate hikes in UScould take place. China can be a slight. China growth has been slowing down. The government is now trying to slow down the growth and managing a more equitable growth or a more sustainable growth. So how well they are able to moderate that, you have seen a lot of cut down in capacities. It would still be critical because if growth slows down sharply, China is still a large driver of global incremental growth. Yes, there could be some risk to global growth because of that. Apart from that, geopolitical risks always remain. canada goose black friday sale
Which are the sectors that you would avoid in portfolio?
The sector to advise are clearly sectors focusing on consumer discretionary like auto, consumer durable and rural themes, I think that should do well, rural consumption is looking good. Infrastructure also certain areas, Canada Goose online they grow railways companies, focusing on that, urban infrastructure should do well. We like metals also. Metal prices are fairly steady and a lot of companies are deleveraging. They are also looking to buy some of the assets that https://www.canadagoosepark.com come in from the stressed asset book. So these are the sectors which we are positive on in this year.