Mkt ranged; no instant gains from land ordinance: Badshah

Taher Badshah of Motilal Oswal AMC says from a one-year perspective, earnings will have to grow upward of 15% to push the market ahead. So the government reforms will have to fall into place for the desired 15% upward push to earnings, he adds.

Nifty is likely to remain fairly rangebound in the very near future, is the word coming in from Taher Badshah of Motilal Oswal AMC. The result or earnings season too will perhaps see just about double digit growth or maybe a little less than that, he adds. He believes there could be some sector surprises, maybe even negative surprises going ahead. Policy-driven measures and stocks benefiting from them are likely to be in focus, he adds. From a one-year perspective, earnings will have to grow upward of 15 percent to push the market ahead. So the government reforms will have to fall into place for the 15 percent upward push to earnings, he adds. On the government giving a go ahead to the ordinance route for Land Acquisition Act and companies like L&T ultimately benefiting from them, Badshah believes there are still some challenges ahead. Some of the projects are still in a limbo because of land acquisition issues, and for these projects to see the light of the day – that is still some time away, he says. "It is good to see the government’s conviction to push these reforms, but the market will have to see actual movement on the ground to bet on these companies," he adds.