The Indian market has been resilient in the last couple of sessions. Although Piyush Garg of ICICI Securities believes that the global markets, especially India, are cheap, but, he says, Europe will determine the future course.
According to him, if the Nifty closes below 5,200 for two consecutive days, the entire range of 4,800-5,200 is wide open for the market to trade. He is betting on sectors like banking, auto, while he is advising to avoid power sector. Also read: Nifty may not slip to 4700; buy banks now, says Ambareesh Baliga Below is the edited transcript of his interview on CNBC-TV18. Also watch the accompanying video. Q: How do you see the Nifty moving from here? Is it more likely that we could retrace and go perhaps lower or do you think the larger trend that we had been working with would carry us forward? A: I think the analysis is very simple. There is a mess in the developed world, especially Europe. No one knows the solution. DAX is trading at a dividend yield, twice that of 10-year German bonds. And that is a good indicator that a lot of risk aversion is already priced-in in the market. In the meantime, regulators are trying everything possible to avert a major crisis. Whenever there is any positive announcement periodically, the markets rally. And then I think there is realisation that possibly the things cannot be implemented in the way people envisage and then again the slide starts. To my mind, I think itDiscover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
