In an interview to CNBC-TV18, Amit Rathi, managing director of Anand Rathi Financial Services said, the pullback will be short-lived. However, he said, these are attractive levels to enter the market now. According to him, the market will remain in 15% range.
He further said, he is underweight on IT and realty sector. In the infrastructure space, he said, valuations are looking attractive. Commodity prices, according to Rathi, will head lower in the next 6-12 months. Also read: Bottom-fishing? Hang on, let market settle, says Jhunjhunwala Below is the edited transcript of Amit Rathi's interview with CNBC-TV18's Udayan Mukherjee and Mitali Mukherjee. Also watch the accompanying video. Q: What are you telling your clients now? A: I think these are attractive levels to start getting into the markets. Yes, there has been a lot of panic. I think the US downgrade was in reality a non-event. But it did two things. One, the downgrade shifted sentiment towards the possibility that the US economy is not recovering and the chances of a double dip are increasing. On the flip side, the timing of this downgrade was bad. In reality, the US downgrade is academic in nature because the US has the ability to come out and print as much money as it can and repay its bond commitments. But in Europe, the challenge is that the Central Bank is independent from the economies. The focus shifted back into the European bond crisis. So, these two things were playing out. We have been talking about it for several weeks. Last time, we were talking about this European crisis and its impact on commodity prices etc. I think this is short-term in nature. There is a sell-off in risk assets, but it is positive for India. Q: Do you see the possibility of the Nifty going down to the levels that people are talking about 4,700, even 4,500 or do you 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!
