Stock market : Gautam Trivedi, Co-founder and Managing Partner of Nepean Capital, joined CNBC-Awaaz to talk about the future state and direction of the market. Gautam ji has more than 26 years of experience in the financial industry. Gautam ji has a deep grasp on the Indian market as well as the American and Asian markets. Gautam has also worked with Religare Capital Markets. Apart from this, he has also worked with GOLMAN SACHS, DSP Merrill Lynch and CLSA Asia. Gautam has also been a part of the M&A team of Reliance Industries.
Gautam’s opinion
Gautam Trivedi is of the opinion that the US Fed may reduce rates by 0.25 percent in September. Rates may also be reduced in December. The reduction in rates in the US will not have much effect on India and emerging markets. The valuations of the Indian and American markets are the same. Fund flow to India will increase only if the rates in the US are reduced by 0.50 percent or 1 percent.
One should wait for one or two quarters before investing in IT
There is still uncertainty in the IT space. The valuations of IT stocks are not cheap. One should wait for a quarter or two before investing in IT. The IT sector is currently going through a lot of pain and confusion. It is not yet clear what impact AI will have on Indian IT companies.
Banks’ loan growth has decreased, pressure on NIM is possible
Talking about the banking sector, Gautam said that a lot of money is coming into the market from MFs and retail investors. Savings money is also coming into the market. The loan growth of banks has decreased. Pressure on their NIM is possible. New people are entering the market rapidly. Due to new people, the fund flow will remain in the market. The passenger vehicle segment is looking sluggish.
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Advice to stay away from auto sector
Gautam says that the auto sector may see a slowdown in the future. The valuation of auto sector stocks also looks expensive. Maruti and Mahindra are trading at 28 times PE. In such a situation, it would be advisable to stay away from auto stocks until the inventory reduces.
Talking about what will be the next trigger for the market, Gautam said that the market is now eyeing Reliance’s AGM. Apart from this, the biggest trigger for the market at this time is new investors. There are 10 crore registered investors in the market at this time. Retail investors are the biggest trigger for the market at this time.
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