Banking, power stocks good for long-term: Experts

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Banking, power stocks good for long-term: Experts

As flat as it can be! That was the report from the markets. The indices were locked in a narrow range with investors trading with caution ahead of the Independence Day break. Soft global cues and profit booking too hit market sentiment though not much cues from Asia.

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Excerpts from Closing Bell on CNBC-TV18 Watch the full show » RELATED NEWS Resistance for Sensex at 15062-15090 Market may see huge decline Mkts fear liquidity tightening; volatility to continue Sensex seems most promising among Asian peers Markets' journey from last Black Friday ALSO READ See what other experts are saying about markets See what FIIs are saying about the markets See what Udayan Mukherjee is saying about the markets NTPC BSE | NSE 31/05/12 Are Mutual Funds betting on NTPC? Other Stocks in this news Omnitech Infosolutions | Tata Power Company |

The Sensex was down 16.30 points or 0.11% at 15000.91, and the Nifty was down 3.45 points or 0.08% at 4370.20.

The breadth was neutral. About 1,702 shares advanced, 1,200 shares declined and 97 shares are unchanged.

The volume was extremely thin as the total volume did not even cross the Rs 40,000 crore mark.

Centrum Broking 's MD Devesh Kumar said the market volatility is going to stay for some time. He explained, "The positive factors have not subsided yet. In the domestic market, new flow-wise, there is nothing expected in the near-term. It clearly implies that in the short-term there is not much upside; in the long-term there is significant upside. So, the market cannot remain at current levels and it will correct - it will come down a bit."

Devesh Kumar suggests that when the market corrects, at that point in time one has to pick their stocks across sectors. He added, "I don't see the market breaching the level of 13,000. So, I think if one is a two or three-year player, then they should be accumulating as market weakens and at various levels be ready with your list of stocks and buy them at reasonable prices."

On global cues on the market, he said, "Before I go out and start buying, I will wait for some time and will wait for the global situation particularly the US situation to be very clear. Although it is not going to impact India much, I think flows to India will definitely get impacted in case the situation deteriorates in the US."

Sector-specific, on the power pack, Devesh Kumar said, "Over the medium-term, the power sector has policy bottlenecks and if those are cleared, this sector is going to do well. In the recent past it had not done much, but it is participating now. So, we are bullish on the sector."

Continuing in similar vein, JV Capital Services ' Sajiv Dhawan said, "We have not really been even looking at this sector from the trading perspective. We are looking at stocks like NTPC , Tata Power , it had good run ups. If you look at those stocks in this sector, you are not looking for the short-term. You are looking at some sort of value and buildup in stocks - that over a period of time will be relatively insulated considering whatever happens globally."

On today's listing Omnitech , the provider of IT solutions and technology services, Dhawan said, "It was heavily oversubscribed. It maybe slightly on the high-risk side for short-term traders but it has got good upside potential. The valuations at the current levels don't look overly stretched, if you believe what the management is saying." He added the Omnitech issue is for the medium to high-risk investors and not any serious long-term portfolio investors.

On the banking space Dhawan said, "If there is a correction in the banking index and the banking stocks as a whole corrects, we will be looking to get back into that, especially some of the private sector banks and very selectively some of the PSU banks." He added banking is a good sector for traders and investors who are there for the medium or long-term.