Independent market expert, Jyotivardhan Jaipuria believes that market may not see an year-end rally this time around but 2016 would prove to be a good year for equities because the economy is slowly bottoming out.
Earnings surprise could come from consumer durables on back of interest rate cuts and 7th pay commission coming through, and infrastructure stocks on back of government spending on roads. They could witness an improvement.
He is also upbeat on the cement sector and infra related defence plays. According to him the domestic story which had not picked up pace until now, will do so. Therefore, it could be more of domestic oriented story.
Globally, he says China is still a concern and we could see more devaluation from there in an attempt to slow their economy. Meanwhile, the Fed rate hike next week could take the uncertainty out of the market.
Micaps in the near-term might see some pain but over the longer-term, for the next two years they will perform better than the largecaps. However, whenever the market corrects or gets nervous, midaps tend to come off faster than largecaps.
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