Manish Goel, founder and director, Research & Ranking believes investors can create substantial wealth by taking a long-term approach as India's structural growth story plays out. To achieve that, he has identified five major emerging themes for the next 5 to 10 years. One of those 5 themes is financialization of savings, and consumption, Goel told Moneycontrol in an e-mail interview.
Goel has more than a decade of experience in nurturing teams and growing businesses successfully from a start-up stage.
On the outlook for IT sector, Goel said earnings growth in the coming years is expected to be remain robust, although it may not be as high as more than 20 percent witnessed over the last 2-3 years.
Do you think the US Federal Reserve may tighten more than necessary in the upcoming policy meetings?
We have witnessed three rate hikes by the Fed in FY22-23 so far. Currently, the Fed interest rate is 3.25 percent. From here on, one more 75 bps rate hike is expected in November. However, we believe this is already priced in by the market. Post this, we might encounter another rate hike which may increase the interest rate by 25 bps or 50 bps, which means the interest rate should settle at 4.5 percent. Since these expectations are as per the Fed's guidance, we would be surprised to experience any further rate hikes.
It is also pertinent to note that inflation hasn't been cooling down but primarily hovering in the range of 7.9 percent and 8.6 percent over the past 7 months, except in June 2022 when it touched 9.1 percent. US Inflation has reduced to 8.2 percent as per the latest report published by the Fed.
Given that inflation seems to be rangebound, we believe that Fed will be more mindful of rate hikes going forward. Therefore, we don't think that further tightening may happen beyond the two instances we have mentioned above.