• Home
• |
• Careers
• |
• Site map
• |
• Contact us
• |
• Kotak group site

Home > Media > Kotak assesses India

Media

Kotak assesses India
Investment Adviser
18th May 2009

Indian equities will need "very clear signs" of earnings being upgraded significantly before the market can take off again, according to the chief strategist at Kotak Mahindra Bank.

Alroy Lobo, who is also global head of equities asset management at Kotak Mahindra, said Indian stocks were nearing the mid-point of where they had traded historically after a sustained rally in the run-up to the forthcoming general election.

He said: "The economy has started responding to the stimulus measures taken by the government, and, providing there is no further global shock, markets should pull back and resume healthier trading."

He said the "cooling off" of commodity prices should also affect Indian businesses positively.

"The results of the general election could change this scenario, particularly for mid caps over the short term, as could the monsoons, which have a bearing on agricultural output, a sector that makes up 17 per cent of India's GDP.”

Mr Lobo said Indian GDP growth would move back up to 5.5 per cent in 2010, and predicted large caps would lead any future recovery.

Contact Us