Positive on mkt with a 3-year perspective: JM Financial

Positive on mkt with a 3-year perspective: JM Financial

Speaking to CNBC-TV18, Manish Prasad, MD and Head of Institutional Equities at JM Financial says that companies need to work on productivity to improve corporate earnings, which have been low since last eight quarter.


Manish Prasad, MD and Head of Institutional Equities at JM Financial believes that market is in consolidation and says that bottom-up is the best strategy is the current scenario. Prasad is positive on the market with a three-year perspective. Speaking to CNBC-TV18, he says that companies need to work on productivity to improve corporate earnings, which have been low since last eight quarters. The government has done its bit to ensure that there is ease in doing business in the country, he says. However, he believes that the global scenario is not very conducive for market currently. It will take another two to three quarters for economy to show any signs of recovery, he adds. On the market front, he says investors need to keep an eye out for companies with strong return on equity (ROE) and good management. Prasad is betting high on urban consumption. Minimum support prices (MSPs), Weather conditions, asset prices and government projects all have slowed down in rural areas and hence, the consumption has fallen, he says. Issues in pharmaceutical sector are not a great worry and will not have much impact in the long-run, Prasad says. US FDA, in recent times, has brought whip down on many pharmaceutical companies.

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Source:Moneycontrol.com