Indian markets in a better position as compared to other EMs: Anish Damania, IDFC

In a chat with ET Now, Anish Damania, Head-Institutional Equities, IDFC Securities, shares his market outlook. Excerpt:

ET Now: So how does one make money in this kind of a range bound market?

Anish Damania: While the market is range bound there are some stocks which have made money and especially those stocks which have been in sectors which generate cash flow, ROE, ROC and little bit of EPS growth. So, these are the stocks which have given a phenomenal returns. It is the selection of stocks which has become crucial.

Secondly, India looks to be a better place in than a lot of other emerging markets. So, despite the fact that there have been redemptions in emerging market funds, India is pretty much held up, and if you see India’s performance since September it has been right on top of the emerging markets.

The positive returns in our markets are going to be driven by earnings growth and FII flows. So, if the FII flows are strongly positive we will see positive markets. However, going beyond 6500 looks to be a challenge given the upcoming elections.

ET Now: Do you think for markets to fall 10% or for that matter markets to rise 10%, we need some clarity about the May event, a 10% move will not come before the May event?

Anish Damania: No, it can come if we see stoppage of redemptions in the emerging markets. With increased affinity to India, we can expect allocations continuing to India and FII flows likely to remain high. However, if the EMCs sell out, then there is less likely chance that you will see a positive move in the market till the time elections are over.