With some intermittent volatility and corrections, the market will jump higher going forward, said Mahesh Patil, CIO, ABSL AMC, in an interview with ET Now.
"There will be periods of volatility and we will see some corrections next year. Initially, there would be some correction, but as the picture gets clearer, the market looks to scale higher going forward," Patil said.
Patil, however, underscored the uncertainty around the magnitude of rate hikes and their impact on the economy.
"The question remains how long the interest rate continues to go up and what will be the impact on the economy. That we will know only in the next calendar year," he told ET Now.
He said the quarterly earnings so far have been a mixed bag, but overall, the growth outlook remains fairly intact.
Strong show by the financial sector has been one of the biggest reasons why the market has been doing well, said Patil. He expects good growth in the sector due to margin expansion amid higher interest rates.
"Financials has been one of the reasons why the markets have done so well. In the last three months, that has led the rally in the market and rightly so. We have seen very strong numbers from the banks and it has been across the retail banks, private banks and also the PSU banks. So at least for the next couple of quarters, we are seeing good growth because of margin expansion on the back of higher interest rates," said Patil.
Disclaimer: This article is based on an ET Now interview published by economictimes.com. The views and recommendations given in this article are those of the analyst. These do not represent the views of MintGenie.
