Expect sentiment-driven rally in near-term: Nomura

Excerpts from Bazaar on CNBC-TV18 Watch the full show »

Nandan Chakraborty, Enam: With global liquidity push and a slew of reforms, the key sentiment dampeners for India have turned for now. While these don't necessarily alter the earnings trajectory just yet and global & domestic growth remain shaky, a short-term floor for the market seems to have been created. We believe it's time to add beta again. Local factors have created more space for the RBI to cut the Repo rate by 25 bps in its policy today.

Prabhat Awasthi, Nomura: I expect a sentiment-driven rally in the near-term. The reforms announced over the weekend have come as a big surprise to the market. A rally in markets could also be followed by a rally in the rupee if capital flows come in strong on improved sentiment. We suggest buying banks, real estate and metals as insurance against a beta rally.