Emkay Global sees more downside to market than 4700

Anish Damania, business head - institutional equity of Emkay Global Financial Services joins CNBC-TV18 to give his outlook of the market.

Speaking to the channel, he says that the market has not bottomed out yet as global headwinds could possibly hurl Indian equities further down from previously seen lows of 4700.
He says that what we see now is actually a churn of money, from sector underperforming to stocks where there is visible growth. "In that sense, auto stocks such as M&M, Bajaj Auto and Hero Motocorp are poised for growth and will outperform the market in a six-month time-frame," he says.
He is still down-beat on banks and NBFCs, but LIC Housing Finance is interesting, he says. Below is the edited transcript of his interview. Also watch the accompanying video. Q: Are you getting a sense that we will at all attack the low of 4700 that we touched or whether that low will hold for now?
A: I think if I were to look at the Indian scenario isolated, probably, we were somewhere near the bottom at the point of time when we hit the last low. However, it may nor remain the same as there are lots of headwinds across the world, especially in Europe and the US. So an equity being the derivative of the underlying business, I think India will get affected too. Therefore, I believe that if this continues for a while, which I think it can, we are still not seeing the lows of the market. Q: You get the sense that there is a lot of portfolio churn which is taking place like money getting out of IT and Banks and put into other sectors. Is that something one should do with respect to their portfolio?
A: As far as IT is concerned, we think that it