SV Prasad of Schroders is not confident of the fact that the markets really formed a bottom in July, as inflation is still high. India is still expensive relative to China and Russia. The P/E for large caps looks high. He expects action in the IT space, given the depreciation movements in rupee. His current concerns are inflation, rupee depreciation and impact of the Pay Commission decisions.
Excerpts from CNBC-TV18’s exclusive interview with SV Prasad:
Q: We have got stuck in a bit of a range but do you think we put a bottom in place in July or you cannot say that with confidence?
A: I cannot say that with confidence while the oil prices globally have come off, inflation numbers are still quite high. From a foreign investor perspective, the prices still look high when one does a comparison with some of the markets especially China. So, it’s still not clear but things are definitely lot better than what they were a month or so back.
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