Key Points
Kunj Bansal, National Institute of Securities Market (NISM), says rural demand will pick up, possibly after the crop comes in or because of the election and other things, the government sending money into the hands of the people comes in or whatever other factors..
The market has to keep giving the sense of the fact that equity is not a one-way straight asset class, it is not a fixed income kind of asset class which will keep giving you returns at all the periods of time; there are risks involved and the market has to keep giving some corrections also for the fresh set of money which is waiting on the sidelines to come in...
Kunj Bansal: Obviously these corrections are the time points that give us the relative valuation correction and as a result, relative safety to invest in in terms of the combination of fundamentals and valuation and then one has to take a call..
Moving on, if I look at the numbers that are there for the previous few quarters and based on the order books that the managements have talked and the valuation correction taken together and juxtapose it with the fact of the overall Indian economy doing well and which area is doing well, capital goods as a space is the one which looks like will continue to do well, given the way the order books are there, given the way the execution has been happening and given the way selectively raw material price correction has been supportive in terms of margin improvement...
These sectors, given the way their valuations have become attractive because of the non-performance of the overall sector as a whole, obviously becomes a good investment case for a medium- to long-term investor from the point of view of optimum combination of fundamentals and valuation..
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