Sangeeta Purushottam, MD, Nine Rivers Capital Views has expressed her views on the present ongoing rally in the market and her views are as appended below:
I think a the moment I would say it is more of a relief rally because it's a little hard to say whether we are at the bottom or not. But a lot of things are getting priced in particularly on the domestic side. So, a lot of the bad news is actually out, it's in the open, in a sense it's digested. If anything is now through this year there could be room for some positive surprises if action happens on a whole host of fronts. Also as far as the earning cycle is concerned, my own sense is that Q3 and Q4 will create the bottom for the earnings cycle and that lower base effect itself will provide some cushion as we move into the second half of next year. We need to remember that in Q3 in the numbers we are seeing the impact of both - mark to market losses on forex as well as the impact on raw material prices wherever there has been import parity in the pricing. There are two things which are getting priced in and we have seen strengthening of the rupee post that. So I think Q3 and Q4 should provide the bottom at least as far as the earnings growth is concerned.
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