Indian equities are unlikely to see a repeat of this year's "abnormally" good returns in 2018, according to Samir Arora, fund manager at Helios Capital. But he expects the overall sentiment to remain positive.
He said adequate domestic inflows has become a standout feature of the Indian stock market. "India is definitely more expensive than many other markets. But if the world is up, we may not necessarily need massive foreign inflows to keep our market up. We can manage that on our own," he told BloombergQuint in an interview.
Commenting on Gujarat and Himachal Pradesh election results that ended with a clean sweep for the Bharatiya Janata Party, Arora said while the outcome is positive, it’s about time the government delivers on its promises. “They should give out road orders faster and do some Goods and Services Tax fine-tuning.”
Here are the key takeaways from his interaction with BloombergQuint:
- The Gujarat and Himachal Pradesh elections' outcome is positive
- The government should be under pressure to deliver.
- Expects the government to continue with the same policies with minor changes.
- Expect earnings pick-up in some commodities and select PSU banks.
- India's corporate rates are on the higher side.
- Government had guided for corporate rate cut, must follow the U.S. now.
Watch the full conversation here: