Rishi Nathany, director, Touchstone Wealth Planners, tells Peter Noronha that markets may see slight correction, but any major dip is not expected in the near term. Edited excerpts:
The markets have been wavering in the past week. Is this the beginning of an intermittent corrective phase?
The markets have already corrected about five per cent from their last week highs. Further correction may happen, but we do not expect any major market dips in the near future.
In fact, small corrections from time to time are healthy and allow the money waiting on the sidelines to enter the markets.
Which stocks/sectors will lead the next leg of upmove after the recent correction?
Realty, infrastructure, sugar as a contrarian play, metals and shipping could do well, though it is difficult to say if they will run up in the next upmove itself.
Have the markets discounted the performance of India Inc in the second quarter?
While the markets are expecting a lot from India Inc in terms of earnings growth, it will not be correct to say the earnings are fully discounted. Stocks could be rewarded or punished individually depending on their corporate performance.
The result season has begun on an encouraging note, with Infosys, HDFC and HDFC Bank posting good set of numbers. Does this indicate all’s well on the corporate front?
It seems so. The recovery has already happened and now is the time for India to reach higher milestones in terms of economic growth. We strongly believe corporate India will continue to do well.
How is liquidity panning out?
The liquidity supply seems to be quite robust and is not showing any signs of drying up as of now.
