Saurabh Mukherjea, the whiz-kid with Ambit Capital, is beginning to sound like a broken record with his incessant whining that the Sensex is destined to plunge to a level of 22,000 someday or the other.
In an earlier piece, I lamented that Saurabh was being too adamant in his outlook that the economy is “misfiring”.
Unfortunately, despite the raging rally in the markets (the Nifty has surged 10% in 3 months and 6.10% in the last month) Saurabh is refusing to change his stance. In his latest interview, he said:
“We are continuing with our circumspection and with our bearishness on the market as a whole. Our view is that the economy is still not showing any clear signs of pickup. We do not buy these ideas that there is some green shoots of recovery. I have been hearing about green shoots of recovery for the last two years and I do not see them”.
In contrast, Ridham Desai, the whiz-kid from Morgan Stanley, is exuding confidence that the worst is behind us and that the markets will scale new highs. He says:
“What surprised me in terms of growth is the government’s tremendous achievement in power sector, in terms of production growth in Coal India, increase in plant load factors, growth in electricity, new connections in rural India, capex that Power Grid is undertaking, growth in renewable energy. There is an improvement in industry demand. Look at coal production, steel production, cement production, lot of these sectors are now standing at multi-month high. Power and roads have already kicked off. Cement demand has gone up because real estate has picked up … Bottomline is that the economy has changed …. We can see the double-digit growth from next quarter. On most markets, we have downside for the next one year, but on India we have upside …. India has a good chance of outperforming other EMs in the next one year.”
Vijay Kedia prides himself on being an eternal Bull. He is naturally irked by the constant nay saying that is going on.
“Of course it (the macro) is looking great …. India is on the cusp of a great revolution … If you don’t understand and if you can’t see it now then either you can’t see or you have an ego problem … A big Bull rally is ahead of us” Kedia roared in his latest interview (@1.20).
The naysayers also got on Porinju’s nerves. He levelled the ultimate insult by comparing them with RaGa.
If you have above RaGa-intelligence and not bullish on Indian equities, I would suggest a crash course on basics arithmetics & economics!
— Porinju Veliyath (@porinju) June 3, 2016
Sandip Sabharwal also voiced his irritation.
"A" brokerage which has a 1 yr Nifty Target of 7200 out with a report saying FY16 GDP growth is "fiction" & economy decelerating
— sandip sabharwal (@sandipsabharwal) June 2, 2016
Sabhrawal did not name the brokerage but there are no prizes for guessing that it must be Ambit Capital.
Now, we have to see whether these rebukes prompt Saurabh Mukherjea to give up his nay saying habit and get back to the fine art of picking multi-bagger stocks!