Expect markets to deliver in four to six quarters: BP Singh

In a chat with ET Now, BP Singh, Executive Director & CIO-Equities, Pramerica Mutual Fund, shares his market outlook:

ET Now: 2014 is off to a very ordinary start. Not only locally but globally also, things are looking slightly jammed.

BP Singh: 2014 now will be more where the reality will set in. It is the actual performance of the corporates which is going to drive the markets and the economy. We are coming out of almost two to three years of situation where the huge amount of liquidity which was put into the system was driving the asset prices. Now we are getting to a scenario where those liquidities are going to be gradually withdrawn and people will have to get back to their normal which is the valuation, the performance of the corporates and the economies which are likely to drive now.

In this context if you see, the developed economies are bouncing back, emerging economies are coming under pressure and so therefore the new balance needs to emerge. We are of the view that India is obviously turning around but we in the Indian market have less patience. We expect turnaround to take place tomorrow but it will take at least four to six quarters before the first investment gets announced. There is huge amount of consolidation and restructuring which needs to take place over the period of next four to six quarters. So therefore, you will continue to see some kind of hope and disappointments carrying together in the same market.