Karwa expects the Nifty to reclaim 11,000 levels on robust earnings along with better GST collections.
The current earnings season will overrule macro issues, feels Krishna Kumar Karwa, MD at Emkay Global Financial Services. Speaking to CNBC-TV18, he expects the Nifty to reclaim 11,000 levels on robust earnings along with better GST collections.
On concerns of US Fed raising interest rates, he said the market has pencilled in 3-4 rate hikes. “Global investors could have anticipated it and positioned themselves accordingly.”
Karwa continues to maintain his positive stance on the consumptions space and sees more legs to the rally in discretionary and non-discretionary plays
The brokerage is currently betting on the real estate space. “Formation of the Real Estate Regulatory Authority has been structurally positive. All strong national and regional names will perform well going forward. Things are also picking up on the commercial front.”
Despite the huge rally in IT stocks, Karwa said valuations are reasonable. “There was under ownership in the current environment and a major part of the move was largely a technical one.” He added that IT companies are seeing decent cash generations.
He sees the bull-run in private banks continuing over the next few years.