It was lackluster day for the market with both the Nifty and Bank Nifty underperforming through the day.
Amisha Vora, Joint Managing Director, Prabhudas Lilladher says markets are showing good amount of resilience to lot of developments including expected Fed rate hike, underlying current in terms of inflation pressure from oil, non-agri and agri commodities etc.. So this resilience and domestic inflows should continue. Therefore it remains a buy on declines market.
Moreover, in next week in all probability, it could touch all-time highs especially if poll results are as per expectation and even in case they are a negative surprise, the correction would be moderate.
The 30-share BSE Sensex was down 97.62 points at 28901.94 and the 50-share NSE Nifty fell 22.60 points to 8924.30.
Commenting the activity seen in the aviation stocks on back of Delhi government cutting jet fuel tax rate from 25 percent to 1 percent. However, the cut is for all flights that come under the regional connectivity routes.
Dipan Mehta, Member BSE & NSE believes usually these benefits get passed on the passengers. He is not optimistic on the sector because the structural issues are unlikely to change.
However, SP Tulsian. sptulsian.com thinks it is a big positive for the sector. He agrees with Mehta that the benefits would be passed through but thinks other states would follow-suit.
Tulsian believes this would not only improve sentiment but also fundamentals for the space. He is positive on Jet Airways, SpiceJet but a bit cautious on Indigo because of no re-rating seen for the stock.
Meanwhile, Vora believes the benefits of this tax cut could be limited. Although the volume growth for the sector has bene good, there has also been capacity additions. The oil prices also have gone up. The jet fuel prices too were hiked few times earlier. So, she is neutral on the space with an accumulate rating on only SpiceJet.
Mehta is very upbeat on the non-banking financial companies (NBFCs), especially the ones lending to retail - be it housing finance, gold finance. He is very bullish on Bajaj Finance and also likes Bharat Financials. Housing finance will see good growth post the government’s focus on affordable housing, he adds.
Vora says the NBFC space has seen good growth and the bounce back in the stocks suggest that there is corporate action in terms of tackling NPA issues etc.
Talking about the interest in new listings like D-Mart, Mehta says one is seeing an uptick in retail spending and with discounts on online shopping reducing, people are coming back to retail shopping. So major listing like D-Mart etc will energize the entire sector. Moreover, investors too are looking for new stories to invest in and the retail theme falls in the center of this. Therefore, this space could be a new growth avenue.
In the same interview, Mitessh Thakkar, miteshthacker.com and Prakash Gaba of prakashgaba.com shared their views on stock specific ideas.
Discover 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!
