Fed hike not a worry; retail investors set to take control of market: Gaurang Shah

Gone are the days when investors had to fear about flows going out of India, says Gaurang Shah, head investment strategist at Geojit Financial Services in an interview with Aprajita Sharma. Whether or not the US Federal Reserve revises interest rates, it may matter little to the domestic market as retail investments through the SIP route will go to record high levels, Shah says. Edited excerpts:  Financial Astrology Tips

Can you draw the difference between valuations in 2014 when PM Narendra Modi stormed to power, and now? Do you think the prevailing valuations are factoring in reforms and a smart recovery in earnings?  Astrology and Numerology Trading Tips

 
When PM Narendra Modi came to power in 2014, there was virtually nothing to cheer about. But in the last two and a half years, he has initiated some major changes like demonetisation, then re-monetisation, most importantly the GST, Benami Property Act and the ways to get black money back into India. All these will trigger a lot of positivity and the signs are already visible at the grassroots level.In terms of the outlook for India, there has been considerable improvement and we have inflows coming into India from a long-term point of view. Talking about earnings valuations, earnings have also improved. One of the worst fears was that demonetisation would have a bad impact on earnings of certain corporates like consumer durables, FMCGs and consumer discretionary, but none of the earnings reported by companies in these sectors have showed any signs of negativity. With re-monetisation picking pace, earnings are expected to increase not only for this quarter but also for the next quarter. Having said that, there are certain pockets of overvaluation which may need price adjustments, price corrections and time corrections. But over a longer period of time, all opportunities on the downside will be great opportunities to buy. Commodity Trading Tips