Indian markets in midst of strong bear rally: Enam

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

Nandan Chakraborty, Enam: Indian markets are in the midst of a strong bear rally, based on hopes of a turn of the rupee, a cool off of Euro-panic, and the new PM cum FM allaying investor sentiment. At such stages of the market, it's wiser to get out of "speculative bubbles" in overvalued so called defensives, such as FMCG. The option could be to switch to cash or stocks that benefit the most from a turn in the rupee, i.e. interest-rate sensitives like banks and autos and capex related stocks like engineering.

BofA ML on eurozone: The Euro Summit surprised positively given very low expectations, but developments in Spain and Italy looking forward will determine how much time the Eurozone has really bought to address the crisis more effectively and decide its future. On the positive, there seems to be an agreement to use Eurozone funds to support banks directly and to intervene in sovereign bond markets. On the negative, the rift between France and Italy on the one side and Germany on the other during the summit could have potentially profound consequences as the Eurozone continues trying to address its crisis.