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See global sell off Jan; slow paced reforms a worry: Ambit

He says lack of any major Bills being passed in this session of Parliament will be viewed negatively by investors, as it will delay the much anticipated recovery in the economy

Andrew Holland expects one more round of volatility in global commodity and forex markets in January, and sees that feeding into equity markets everywhere. He sees the Nifty settling around 8300 near term.

In an interview to CNBC-TV18’s Latha Venkatesh and Sonia Shenoy, he says India will not be able to weather the turbulence in global markets unless the government accelerates the pace of economic reforms.

He says lack of any major Bills being passed in this session of Parliament will be viewed negatively by investors, as it will delay the much anticipated recovery in the economy, and by extension, the uptick in corporate earnings.

Holland is bullish on private sector banks and auto components firms. He is bearish on defensives, particularly IT as he feels valuations are stretched.

He says the outsourcing to India story is over, and hereon, earnings of Indian IT companies are likely to grow slowly. This in turn will lead to contraction of the high price to earning multiples, he says.

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