The Indian equity market took a breather today and was hovering around the 8600 mark.Equity benchmarks remained lacklustre for the second consecutive session Wednesday. The 30-share BSE Sensex was down 59.24 points at 28005.37 and the 50-share NSE Nifty fell 18.50 points to 8624.05.
Market expert Jai Bala of Cashthechaos.com believes that Nifty is undergoing a short-term healthy correction and could likely go below 8400-8300, which is perfectly okay.
According to him, market is doing exactly what it is supposed to do at this point of time. It needs to climb the wall of worries, he said in an interview to CNBC-TV18
When asked if he was impressed with the performance of PSU banks, he said one needs to be careful about the space. He is not so upbeat on Union Bank and Canara Bank from the space and expects them to touch the lows they made couple of months back. However, he is positive on Punjab National Bank (PNB), Andhra Bank. PNB is set for Rs 160 plus in short to medium-term and it is unlikely to go below Rs 114.
Even Varun Goel, Motilal Oswal AMC is not very upbeat on PSU space. He thinks there is more cleaning up that needs to be done which could be completed by end of FY17 and thinks most banks would take struggle to get back to profit levels of FY14-15. So, says one is better of being present in private sector BFSI space and within that he likes housing finance companies, consumer finance companies because that is where credit growth is happening and where balance sheets are better.
Dilip Bhat of Prabhudas Lilladher is very positive on Jubliant Life Scineces from the midcap space. He thinks the stocks is good for another 30-40 percent upside from current levels. In the next 18-24 months the return on equity will go up and debt levels are expected to come down every six months, he says.
Talking about the Dish TV's likely acquisiton of Videcon D2H, Bhat says although currently Dish TV will be a paying a premium price for the strategic stake, gradually they will be able to monetize on it.
From the non-banking financial space he likes DHFL because it has consistently shown reasonable growth, the net interest margins have been good, and it will continues to see good growth for next two years. So it makes a good investment from a 15 months perspective, thinks Bhat.
Other market experts like SP Tulsian, sptulsian.com, Mitesh Thacker of miteshthacker.com, Ashwani Gujral, ashwanigujral.com also spoke about stocks like Dish TV, Britannia, KNR Construction, Shalimar Paints etc
For the full discussion, watch video.
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