White Oak founder Khemka eyes post-Covid market normalisation for India GDP expected to grow 11.5% in 2021
Prashant Khemka of White Oak Capital Management
The Indian economy is set for normalisation in the wake of the coronavirus pandemic, with the emerging market less badly affected by Covid-19 than anticipated, according to White Oak Capital Management founder Prashant Khemka.
Khemka, who prior to founding White Oak was CIO and lead portfolio manager of GS India Equity at Goldman Sachs Asset Management, explained high frequency indicators such as tax receipts, auto sales and goods traffic movement point to a sharp rebound in economic activity over the near term.
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For some, the market’s phoenix-like rise from Covid-battered nadir in March 2020 and the liquidity-fuelled nature of the bounce, sans strong earnings support, is reminiscent of a party that has gone too far into the night.
Prashant Khemka, Founder of White Oak Capital, is not from that camp.
The investing guru says it is impossible to time the market based on macro events or valuation calls.
Updated Jan 27, 2021 | 15:41 IST
2020 was a year of one-offs as per him, he believes that 2021 will see normalisation of returns. Screengrab
Everyone has expectations from the Budget 2021, but unless there is something very substantial in the Budget the market may move intraday and put the event behind us. The market had factored in well in advance that there would be a sharp economic rebound & hence had moved ahead, in fact, corporate earnings are not turning out as bad as most had earlier thought, tells Prashant Khemka of White Oak Capital to Ajaya Sharma.
IT Services seeing very strong demand trends from around the world, Banking sector so far has given out solid numbers showing very good trends and rebounding unscathed is a big relief, 1-2% of loan books may eventually be impacted due to covid, consumer companies also showing good demand growth part of its pent up but underline economy in rural areas also picking up.
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The year 2021 will be a year of ‘normalization’ with vaccination, the economy should pick up the pace, corporate earnings will also bounce back strongly, and equity markets which have already discounted the rebound should hold the gains, Prashant Khemka, Founder of White Oak Capital
“Benchmark indices are up 13-14% so far in the year 2020, and for the year 2021, I expect the market to give a low double-digit return in the range of 10-12% return,” added Khemka.