Market in May: Best to go on a vacation, say experts

It's been an unusually quiet expiry session. The frontline indices were locked in a narrow range right from word go. At closing bell, the Nifty stood at 5,189 down just 13 points, the Sensex shed 20 points to close 17,130.
  • Language
  • App
  • Subscriptions
  • Specials
  • Sign-In
  • Register
GeStepAhead GrowMyMoney
moneycontrol.com

Home » News » Markets » Market Edge

Apr 26, 2012, 10.37 PM | Source: CNBC-TV18

Market in May: Best to go on a vacation, say experts

It's been an unusually quiet expiry session. The frontline indices were locked in a narrow range right from word go. At closing bell, the Nifty stood at 5,189 down just 13 points, the Sensex shed 20 points to close 17,130.

Like this story, share it with millions of investors on M3

Market in May: Best to go on a vacation, say experts

It's been an unusually quiet expiry session. The frontline indices were locked in a narrow range right from word go. At closing bell, the Nifty stood at 5,189 down just 13 points, the Sensex shed 20 points to close 17,130.

Post Your Comments

Share Cancel

Anand Tandon (more)

Market Expert, Independent Market Analysts | Capital Expertise: Equity - Fundamental

Moneycontrol Bureau

It's been an unusually quiet expiry session. The frontline indices were locked in a narrow range right from word go. At closing bell, the Nifty stood at 5,189 down just 13 points, the Sensex shed 20 points to close 17,130.

Historically, May has not been a great month for the market. It is vacation time for a lot of the families (and thus investors), therefore, the interest will be low. And once the Parliament is shut down, you will find some attempt at increasing end user prices for a whole variety of stuff, which while may appear to help in the government finances, will actually make corporate profitability even more under pressure and will certainly put a major strain on the consumer's pockets. That’s not going to be great for the market either.

According to Anand Tandon of JRG Securities, the only thing that’s going for the market right now is the fact that on the valuation basis, at least on current consensus, it doesn't look expensive. "You are not really looking at having to pay a huge amount of premium for a growth market," he believes.

But the question really is that is the growth going to come through because most of the sectors again seemed to be dominated by government policy and even growth ones like telecom, for example, has now become completely mired up in what the government will do.

Meanwhile, rating agency S&P ruffled feathers with the revision of its outlook on India’s sovereign rating to negative from stable. While S&P sounded the warning bell on account of the rising twin deficits and slower economic growth, government voices believe that fears are a bit overdone and the situation is not as bad as it is being made out.

"Do you believe that there is not pressure on the government to contain the fiscal deficit?" asks KC Chakrabarty, deputy governor of RBI.

"It has nothing to do with the rating. Please understand that our currency intervention is depending on the volatility in the market, not based on the rating because of rating if there is volatility, if there is a need to intervene, Reserve Bank will intervene," he told CNBC-TV18 in an interview .

From a trading point of view technical analyst Sudarshan Sukhani says, one is just assuming that the first leg of the downtrend should take the Nifty to somewhere around 5,000. "That's how I am trading and that's how I am positioning myself for most of May," he says.

Sagar Salvi
sagar.salvi@network18online.com

Buy, Hold, Sell ? Hear it first on M3
Market in May: Best to go on a vacation, say experts

See all

Get started using your favorite social network

or

Login using moneycontrol ID

Username
Password

Need help logging in? Reset password.

Don´t have an account? Sign Up

Get started using your favorite social network

or

Simply sign up using this short form

* mandatory

UserName*

Username should be atleast 4 character

Password*

Password should be 8 or more characters,
atleast 1 number, 1 symbol & 1 upper case letter

Alert

Your Password should contain
  • 8 or more characters
  • At least 1 number
  • At least 1 symbol
  • At least 1 upper case letter
Confirm Password*
Email
Already have an account? Login