Jagannadham Thunuguntla, Equity Head, SMC Global talks to Puneet Wadhwa on the road ahead for the markets and likely outlook of the major sectors.
Why are the markets trading subdued since quite some time now?
The markets were subdued for past 8 months. This is largely due to extremely sharp bounce with almost 100 per cent rally from the bottoms of 2008. This rally has forced the market way ahead of the fundamentals.
This has resulted in placing the market in an undecided zone where the gap between fundamentals and valuations needs to get filled-up before they resume an upward journey. Given these facts, I expect 2010 will be a boring year for the Indian equity markets.
Given the recent advance tax numbers, what is your opinion on Q4 earnings of India Inc? Any sectors that could outperform?
The advance tax numbers, GDP, IIP numbers all indicating healthy earnings of India Inc. But, the same enthusiasm may not get translated into the markets as they have already factored-in all these positives way back, leaving no room for a fresh rally to take place.
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