E-Paper
Investing in India-centric firms a safer bet: Andrew Holland
MUMBAI: Andrew Holland, CEO, Ambit Investment Advisors, is a keen watcher of Indian market trends. In a chat with HT, he says that markets reacted adversely to Brexit,
MUMBAI: Andrew Holland, CEO, Ambit Investment Advisors, is a keen watcher of Indian market trends. In a chat with HT, he says that markets reacted adversely to Brexit, but are now rising as investors have realised it is a long haul. Excerpts:
After the initial shock of Brexit, we have seen a global recovery in stock markets. Your views?
The realisation that Brexit will take time and nothing changes in the short term, coupled with expectations of additional global easing have brought optimism. Most investors expect the US Federal Reserve to hold rates this year and the Bank of England to reduce rates over the next few months.
Where do you see Indian markets heading by year-end?
We have to account for global factors. Up until this time, we were not in an economic recession but a profit recession. A good monsoon along with the 7th Pay commission hike will move the Indian economy up a gear. This would be the catalyst for markets, which will also rise in line with earnings growth.
What are the sectors that are looking attractive?
Investing in domestic companies, with operations mainly in India, would be a safer bet. We have been invested in the non-banking finance corporation (NBFC) space and prefer private banks too.
How would you look at PSU banks in the backdrop of the bad loan stress and mergers?
We don’t think the pain is over yet in PSU banks and we aren’t been convinced in that space. Given the problems PSU banks are facing, merging them may throw up more disruption at a time when restructuring should be the strategy.
