Scepticism is keeping the markets up: Sanjay Dutt
"If you look at what we have seen in the last few months, it has been a reasonably good amount of consolidation after we touched the lows of 5200-5300. We are basically assimilating the earnings that are flowing in."
By 
| Updated:
| Updated: Sanjay Dutt, Director, Quantum Securities Pvt. Ltd. in an interview with ET Now talks about his outlook on the markets.
Given the kind of fundamental turf we are in, are you a bit surprised with the market strength?
No, I am not. If you look at what we have seen in the last few months, it has been a reasonably good amount of consolidation after we touched the lows of 5200-5300. We are basically assimilating the earnings that are flowing in.
Most of the positive earnings are more or less in the price but negative earning surprises are obviously being dealt with ruthlessly as we saw in the case of Infosys.
The reason why I am not surprised about the strength is because investors at large whether its retail or institutional on the domestic side or whether it is the private client group on the HNI side, are underinvested or are sceptical about the markets ahead because of macro headwinds, whether its inflation, interest rates, the political situation or whether it’s the corruption issues that have been plaguing us.
It is that scepticism, which is keeping the markets up because we are slowly getting in some flows from overseas. On our FY12-FY13 basis, we are not stretched in terms of valuation, so I am not too surprised by the strength. I do not see the reason why the second half would be much better than what we have seen in the last few months.
Given the kind of fundamental turf we are in, are you a bit surprised with the market strength?
No, I am not. If you look at what we have seen in the last few months, it has been a reasonably good amount of consolidation after we touched the lows of 5200-5300. We are basically assimilating the earnings that are flowing in.
Most of the positive earnings are more or less in the price but negative earning surprises are obviously being dealt with ruthlessly as we saw in the case of Infosys.
The reason why I am not surprised about the strength is because investors at large whether its retail or institutional on the domestic side or whether it is the private client group on the HNI side, are underinvested or are sceptical about the markets ahead because of macro headwinds, whether its inflation, interest rates, the political situation or whether it’s the corruption issues that have been plaguing us.
It is that scepticism, which is keeping the markets up because we are slowly getting in some flows from overseas. On our FY12-FY13 basis, we are not stretched in terms of valuation, so I am not too surprised by the strength. I do not see the reason why the second half would be much better than what we have seen in the last few months.
Too busy to trade in stocks? Invest in Mutual Funds with ET Money!
Bookmark or read stories offline -
Download ET Markets APP
Download ET Markets APP
ADVERTISEMENT
