Expect slowdown in revenue growth and flat margins: Arindam Ghosh, BlackRidge Capital Advisors

In a chat with ET Now, Arindam Ghosh, CEO, BlackRidge Capital Advisors, shares his views on the current outlook of the market. Excerpts:

ET Now: What is the right way to approach the market?

Arindam Ghosh: One needs to differentiate portfolios. It also depend on the kind of calls one is actually taking—whether it is a pure short or a medium term call or a longer term call.

If we get into a risk off environment, we may see some of the cyclicals starting to come back in favour. However, if we get into some kind of a risk on environment, the tendency is to move across to some of these defensives.

Obviously, the valuation is something which is not sustainable; we are seeing a weakening of the overall demand situation even for this quarter. We expect there would be slowdown in revenue growth; we would see the margins to be sequentially flat; the operating costs are already high and contribution from the treasury is also going to be muted.

Hence, I would say that we would not expect to repeat what we have seen in the past.

Sectors like IT and teleocm is where we would see a lot of money moving in and sector rotational happening in favour of these.