We are not too far away from all-time highs. Over last week, some of the sectors that have been traditional underperformers like the entire PSE segment, were outperforming. Are you seeing value picks even at these levels in some of those sectors that are now coming to the fore?
Yes. The overall view on the market remains positive. I firmly believe that we are in a long-term bull market. There can be short-term pullbacks or probably a correction in the market which is very difficult to time for investors having a medium term time horizon.
The outlook for the market remains fairly constructive and this is coming on the back of very strong underlying growth in the economy and very strong earnings growth that we are witnessing and that shall continue.
Coming back to the point on value emerging and the outperformance of state-owned companies, October could prove to be a historic month, because over the next few weeks, we will hear the government’s decision on divestment of Air India. After 15 years, we may actually see a government company being sold 100% to the private sector.
If that really happens and it goes through which it should, then that will just set the ball rolling for many more divestments which the government intends to do and more importantly, it is also due to a significant value unlocking of a lot of state-owned companies. The price performance that we are seeing in public sector companies is a reflection of that.
