Growth in the domestic equity market is expected to be more stock, rather than sector driven, said Lakshmi Iyer, Head- Fixed Income and Product, at Kotak Mahindra Mutual Fund talking about her expectations from markets in 2011.
The equity market may as such post a largely consistent growth trend, with reduced volatility-bouts, and lesser divergence in the sectoral growth. The returns may consequently reflect the nominal growth in the economy, she added.
The domestic debt market performance would remain a function of liquidity conditions and inflation outlook. The interest rates, which now are largely at pre-2008 crisis level, may remain unchanged initially and subsequently react to events globally as also domestic. Resultantly, Indian bond yields may move sideways for most of the year.
Citing about her favorite sectoral picks for 2011 she said, For various analytical reasons, we believe that Banks with high CASA, Pharma companies that have a wide FDA approval and diversified product portfolio, and Media with a deeper reach, may be the key sectors in the following year. Also, the FMCG and the IT sectors too could look positive in the following year.
Source:http://www.myiris.com/newsCentre/storyShow.php?fileR=20101223162527707&dir=2010/12/23&secID=livenews
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