The Indian stock markets may begin to "consolidate" in January after a run-up to record levels in recent days, according to Avendus Capital's Andrew Holland.
"I think going into January... we will probably be a little bit more sober. Christmas maybe has come early for us in October-November and maybe we'll see that consolidation," Holland, chief executive officer at Avendus Capital Public Markets Alternate Strategies LLP, told BQ Prime's Niraj Shah.
The Nifty 50 closed at an all-time high of 18,812.5 on Dec. 1 as global equities grapple with volatility on fears of a recession in the U.S. on rate-hike spree to quell inflation. The benchmark has been trading around the levels since then.
While the first half of 2023 is going to be "tough" for index returns, Holland said that he would continue to stay invested in two key sectors—autos and banks.
According to Holland, banks are going through a "new growth phase" with lower levels of non-performing assets. He quoted Uday Kotak who said, "We are in that Goldilocks scenario where we are getting growth. We haven't got a baggage to look at."
The only concern in such a scenario is that there's a "sharper fall than expected" in the global growth, which would impact the current account deficit and balance of payments leading to a rise in borrowing cost, he said.
Watch the full interview here:
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