In the last year, the Indian market was in a consolidation phase with strong demand in the economy, increasing capex, and a good chance to deliver double-digit earnings growth, according to Sushant Bhansali of Ambit Asset Management.
"Markets will rally over the next two-to-three years on earnings growth, and we are quite bullish on Indian markets for the next two years," Bhansali, chief executive officer of Ambit Asset Management, told BQ Prime's Niraj Shah.
Key Themes
The major sectors contributing to the growth will be information and technology and banking, according to Bhansali, who is particularly bullish on IT.
Earnings are getting back to normal levels for all the sectors. However, according to Bhansali, IT did well last year, and this year too, the growth rate looks quite attractive and better than the last five to seven years of earnings growth.
Platform Companies Still In Dream Zone
Speaking about online platform companies, Bhansali said that the earnings are just not there yet. Some of the companies have built really good businesses that are very scalable and will deliver great earnings in the future, but they are still in the "dream zone," he said.
Few of the platform companies will do very well in the next ten years, with attractive earnings numbers, according to Bhansali. “However, platform companies are still at higher risk,” he said
Watch the full interview here:
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