Market experts expect a rebound soon
The message from market gurus, post the steep fall witnessed on Thursday is clear: Use the correction to buy into good, quality stocks. Equity markets fell sharply on Thursday fearing that the political developments between India and Pakistan might escalate further into a war-like situation. However, this fall was aggravated by the fact that Thursday was also the day of expiry of futures and options contracts. Nirmal Jain, chairman and managing director of India Infoline Finance, says, “Market needed a reason to correct as it had risen significantly.”
While there is no certainty on how the political matters will develop, the markets are likely to remain volatile till the political situation achieves some certainty. S P Tulsian of sptulsian.com, says, “Even though volatility will continue for a few days but markets will stabilise soon. Investors should buy companies, which are likely to post good Q2 numbers in the agrochemicals, transformers and auto ancillaries sector.”
Amongst key sectors, those focused on the domestic sector should do well. Rakesh Arora, an independent market expert, says, “Our economy seems to be going from strength to strength and global liquidity position is good. Investors should focus on domesticbased
“CLEARLY, IF POLITICAL DEVELOPMENTS RESULT IN AN ESCALATION IN VIOLENCE, THERE IS CAUSE TO BE WORRIED AND THE LEAST OF OUR CONCERNS WILL BE THE MARKETS THEN. BUT THIS IS AS GOOD A TIME AS ANY TO BUY GOOD AND CLEAN STOCKS” SAURABH MUKHERJEA CEO, institutional equities, Ambit Capital
sectors such as industrials, a few consumption names, which have fallen and pharma companies.”
Ajay Bodke, chief executive officer and chief portfolio manager (Portfolio Management Services), Prabhudas Lilladher, is bullish on consumerfocused
“IF IT’S JUST SKIRMISHES ON THE BORDER, THESE THINGS HAPPEN ALL THE TIME...THE MARKET WILL PROBABLY RECOVER AND FIND SOME DIRECTION. A RECOVERY, IF ANY, WILL HAPPEN EITHER ON FRIDAY OR MONDAY” U R BHAT MD, Dalton Capital Advisor
sectors such as automobile, banking and financial services, cement and fast-moving consumer goods. “We are positive on Maruti Suzuki, Tata Motors, IndusInd Bank, HDFC Bank, YES Bank, Britannia, ACC and HeidelbergCement,” he adds.