The Economic Times - - Money -

Even as we have been com­plain­ing that capex is not hap­pen­ing, tele­com in­fra­struc­ture in In­dia has been com­pletely over­hauled. Given the com­pet­i­tive pres­sures, the capex on tele­com will go up, it has al­ready been high by his­tor­i­cal stan­dards. The prob­lem is that the ar­eas where we need more ca­pac­ity, like ur­ban in­fra, are sec­tors where PPP is still in very prim­i­tive stages. A sub­stan­tial por­tion In­dia’s Gross Fixed Cap­i­tal For­ma­tion is in real es­tate. So the real es­tate mar­ket needs to take off. Un­less land prices come down, rental yields will not be mean­ing­ful and there­fore real gen­uine de­mand, not in­vestor de­mand, is not go­ing to come. With that caveat, I think 75-100 ba­sis points from now to March is likely. Un­less there is a big shake up in medium term out­look for In­dia, I see no rea­son why we should see a mean­ing­ful cor­rec­tion.

In my line of work, it does not pay to bet Nifty and Sen­sex. It is im­por­tant for us to beat the in­dex. From that per­spec­tive, I would con­tinue to fo­cus on low in­ter­est rates, met­als, pri­vate sec­tor banks and even IT. Th­ese are some sec­tors I would bet on to beat the in­dex.

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