FII flow, earnings growth hopes pushing up market; not exposed to telecom:

 Nilesh Shah expects DIIs to be net buyers of Rs 75,000 crore to Rs 1 lakh crore in calendar year 2017. He does not have a direct exposure to telecom due to pricing war which is going on. ‘Get Rich’? Experts’ advice on ways to multiply wealth"Want to ‘Get Rich’? Experts’ advice on ways to multiply wealth Higher inflows from foreign institutional investors (FIIs), along with domestic investors has reflected in the sharp run up in the market. “From November 8 to January 31, domestic investors were buying. FIIs were also buying (in this market) from February 1,” Nilesh Shah, Managing Director, Kotak Mahindra Asset Management Company, told This buying is driven by a hope of (increase in) earnings growth and that is what is reflected in prices.

  Furthermore, he expects domestic institutional investors (DIIs), led by mutual funds, to be net buyers in calendar year 2017 of anywhere between Rs 75,000 crore to Rs 1 lakh crore. On sector-specific bets, Shah is underweight on metals, with the rupee appreciation having an impact on them. Moreover, protectionist policies in the developed world will also have an impact, he said. In the midcap pharma space, he feels all sectors in pharma offer a great opportunity. Domestic firms will start getting approvals from the US FDA in the next 6-12 months, he says. In fact, stress, urban lifestyle and pollution will create opportunity for domestic pharma companies, Shah told the channel. Meanwhile, on the newly-announced Idea-Vodafone merger, he feels current situation will not be appropriate for shareholders in terms of returns. “Three large players will try to create equilibrium with pricing, which, in the near term, may not be appropriate for shareholders,” he added. 

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