Don't go buying all out, but only 10-15% of what you want: IL&FS

The news of surgical firing on Wednesday night by the Indian army has sent the market into a panic mode. The market should have expected it as the army would not have sat back doing nothing after the Uri attack, says Vibhav Kapoor of IL&FS. The panic is more as today is also the F&O expiry. Speaking to CNBC-TV18, Kapoor says that: “It is an opportunity for long-term investors.” He advises one to buy 10-15 percent of what they want and not completely go on a buying spree. High beta stocks, blue chips, automobile companies as well as sectors that were showing strength earlier can be looked at today. He expects markets to bounce back soon.
Robert Parker of Credit Suisse says that reaction of the currency market has not been as volatile as the equity. He expects investors to be in a wait-and-watch mode and unless things escalate further, this will be only a short-term reaction.

Parker has a positive stance on the Indian economy and sees the country maintaining a 7.5 percent growth rate.

While sentiments are important, market positioning, too, is essential for India, believes Manish Kabra of BofaML. Any unpleasant news on global inflation could lead to India underperforming. Indian equities are over-owned, he says. Sentiment positioning could lead to profit-booking in Indian market, Kabra says. For valuations, global bond yields need to rise, which is not happening as of yet. Watch videos for more...