Though the Indian benchmark indices managed to close to their previous highs, it was an extremely volatile day. The Bank Nifty fell from 21,000 to 20,550. The Nifty ended the last trading session of the week, at 8822 and Sensex rose 167 points to 28468.
Ashwani Gujral of ashwanigujral.com said he expects the market may consolidate more before breaking out to new highs.
Dilip Bhat, Joint MD, Prabhudas Lilladher is worried about a lot of action seen in penny stocks like Jaiprakash Power, Jaypee Infra etc. He advised caution saying that one needs to be very stock specific as only a few stocks have the potential of turning into smallcaps or midcaps. The current momentum in penny stocks could also be because the frontline stocks are trading at expensive valuations, he said.
Discussing HDFC Bank on back of RBI announcement, Bhat says it remains a stock which needs to be in every investor's core portfolio. Investors with a time frame of 3-6 months should not expect great returns, but those with a larger time frame of 12-18 months can expect good returns, sadi Bhat.
For Gujral, Tata Motors is still a long-term value buy.
Bhat thinks on the back of poor show from Tata Motors in terms of its JLR numbers, the stock could correct around 4-5 percent but it is reasonable to expect it to go to Rs 500-520 levels. So, buy on dips, he says.
From the pharma pack, the house may look at investing in Lupin, Aurobindo and some midcaps like Thyrocare, says Bhat, adding that they are positive on the sector.
For the full discussion, watch video