Image: Manoj Patil
Stock markets unlikely to show any upside till 2019 election results, says Ridham Desai, MD and India equity strategist at Morgan Stanley.
On the prospect of more rate hikes this year:
We were not expecting it this quickly. Future RBI action will depend on how the US Fed moves and how oil prices fluctuate.
On the outlook for large cap stocks:
India will witness a secular bull market for the next five years, led by improved corporate earnings growth. Stocks are not expensive, domestic growth is looking good. But there is the elections factor. So we may see quarters with strong growth but the markets may not rise.
On what happens if BJP does not return to power:
The issue is not whether the ruling government comes back or not. If the markets start to believe that a fragmented coalition could emerge as a reality, there could be more pain for the markets.
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(This story appears in the 06 July, 2018 issue of Forbes India. To visit our Archives, click here.)