Anand Shah, Deputy CEO & CIO, BNP Paribas MF is of the belief that PE re-rating is likely to continue given interest rates remain low and with expectation of them remaining benign globally and locally as well.
Moreover, stock picking opportunity in the market remains as the economy recovers, says Shah. There are opportunities even outside of largecaps – especially in midcaps and small caps where earnings growth has been visible, he adds.
According to him, the macro parameters are getting better but the question is when would the micro – the GDP growth and the earnings growth start reflecting the superior macroeconomic parameters.
