The Indian benchmark indices closed on a flat note on Wednesday ahead of the US Federal Reserve decision. The Sensex fell 24.62 points to 28498.58 and the Nifty declined 3.15 points to 8772.75. About 1389 shares advanced against 1280 declining shares on the BSE.
According to most global market experts, the US Fed is unlikely to move today.
However, even if the Fed does not hike rates, Dipan Mehta, Member, BSE & NSE is not bullish on the market going forward and advises caution.
According to him, one should not expect new highs for the market during Diwali time; instead investors need to brace themselves for more correction and volatility. The next few months are going to be tough for them, he says.
At the current juncture, there are no positive triggers for the market as such – GST is out of the way, monsoons are done with, interest rate of 25 basis point by RBI is factored in.
The largecap stocks, too, haven’t shown any price appreciation, and whatever little activity seen has been in the midcap space that too down the value chain, says Mehta.
So, he is cautious on the market and says if one is looking at buying then do that when there is distress in the market rather than chasing stocks.
Stock-specific, he is still upbeat on Eicher Motors despite the rally seen in the stock and despite expectation of competion form the likes of Bajaj Auto. The comapny is expected to be a beneficiary of a good monsoon and Seventh Pay Commission. IT should be bought at every correction with a view of long-term investment, says Mehta.
However, he is not so positive on Infosys and expects growth to flatten out going forward. One should look at companies where there is growth in the future, he added.Market expert Ajay Bagga says it is good that the market consolidated and has taken a breather before the Fed meet. He does not expect a rate hike form the Fed.
If there is a hike, then the market may go down a bit but then after some time would recover saying that if the Fed is seeing a economic recovery in the US then it is good. So again, Indian markets would go up, says Bagga.
Sector specific, he is wary of IT, but like cyclicals, autos, cement and financials.
Market experts SP Tulsian, Prakash Diwan and Ashwani Gujral also shared their views on specific stocks.For the entire discussion, watch video
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