Key Points
But I think that is exactly what you are probably going to get up until the time you have a situation where the broad domestic economy is expected to do well, I doubt if you will probably get very-very punchy corrections," says Taher Badshah, CIO, Invesco Mutual Fund...
I think we have been maintaining this outlook, I mean the backdrop, especially for the broader market which has been under the radar where there was an expectation that there was an excess which had been built up perhaps we did see a decent correction of a certain magnitude, probably about 7 to 9 odd percent at the indices level and I think that is what you would probably get in an environment where the background as far as earnings and the overall macro construct is still reasonably positive...
It is a little hard to say, you have to wait for corporates to deliver and try and see if some of the expectations of the market are met or perhaps even exceeded and I think there have been companies in certain parts of the market, certain sectors which have been constantly delivering not just on expectations but probably even beating expectations..
Industrials at a broader level are expected to kind of do well and they probably have that scope to perhaps deliver better at least from the point of view of profitability if not as much from a top line perspective versus expectations...
So, we will see how it goes but like as I said I mean not really much has actually changed and therefore to that extent I would say at an aggregate level expectations are not really very hot, kind of muted but we will keep observing as to when that inflection point were to probably arrive, at which stage you can probably expect better execution or better conversion of some of the businesses, some of the deals that have been won into top line and that is what essentially the market is looking forward to from IT companies...
