The short -term pressure can persist, but the long -term market forecasts remain positive: Rohit Srivastava

How do you read the markets at the moment and what do you think the graphs indicate?
Rohit Srivastava: This market has experienced a slow and steady slide. At a certain point, however, we have to see what we call a counter-trend bounce. There are some early indications that this could happen, but we would like the market to continue more than 24,600 to be more confident.

What would that really mean? Does it imply a run -away movement to the advantage such as in many other parts of the world? Maybe, maybe not, because headwind can last for a while. The benefit can reach around 25,200 in the coming weeks, but we cannot rule out the pressure at higher levels.

That said, this is all in the short term. If we somewhat extend our time frame to a medium to long -term prospect, this entire phase seems to be a consolidation within a long -term correction that started in September of last year. We had recovered considerably from that moment on and we currently withdrawn around 38% of the profits of April.

So this phase represents consolidation – a waiting time before we enter the next phase of the bull market. It is a process to shake out weak hands, while it clearly distinguishes winners and losers. Shares that cannot deliver are knocked down, while those who perform well show outperformance, even in a weak market. This creates a stock -specific approach for investors, making returns on a horizon of one to two years possible. The disorders in the short term can remain difficult, but we do not foresee major problems in the longer term.

A very important collection meal of your answer is that this is a period of consolidation for the next phase of the Bullmarkt. That said, can you further comment on how much participation of the wider market you would expect in this next phase?
Rohit Srivastava: As I said, a segregation happens between winners and others. Companies that will yield strong figures will stand out, while those who do not make their outlooks will not make adjustments for the next six to twelve months will remain. In the end we expect a wide bull market, because that is the nature of such markets. When we say “Bull Market”, this means that several sectors and segments participate. What is really needed is that valuations and other factors are to correct and tune into the growth potential of underlying companies. Even companies that are expensive, but that they have demonstrated high growth, have performed well over the past to two months.

When we enter the next stage of the bullmarkt, we expect another broad rally. MidCaps and Smallcaps are likely to be larger than largely, because they have brought higher profit growth and can continue to do so in the coming months and years. So, although portfolio shifts and individual choices matter, they will not change the overall outcome at a wide-level.