Fundamentals intact but no catalyst to buy: Experts

Although the market has sold off to a large extent and continues to remain volatile, the market fundamentals are still intact is the word coming in from market expert, Ajay Bagga. The correction is basically because of global turmoil and not our fundamentals, but going forward to one could witness sell offs at every rise. Therefore, it is better to sit on the sidelines and let the volatility pass off, says Bagga in an interview to CNBC-TV18.The BSE Sensex crashed more than 2 percent on Friday to end at lowest closing level since July 2014. The sharp fall was mainly driven by consistent outflow of money on global worries. There was also a caution ahead of US jobs data due later today, which will decide whether Federal Reserve will hike rate or not.Bagga says, valuations look good but there is a no catalyst to buy, so it is better to wait out for this global volatility to subside and more importantly, for the Fed decision before entering into the market.On the contrary Rajesh Kothari, Managing Director, AlfAccurate Advisors believes correction is good opportunity to add. In fact make use of this volatility to build long-term portfolios, he says and keep adding on every dip.He expects the Jobs data out of the US today to be good, which could push the Fed rate hike further to December and markets on Monday could see a rally.Vishal Malkan, malkansview.com advices against trading the Nifty and does not think shorting at the current levels is a good idea. According to him the downside is not yet over, so one must wait for confirmation of the bottom.When asked which stocks and sectors they would prefer to buy or sell in the current scenario, Bagga says one must look at IT and Pharma which are the beneficiaries of a depreciating rupee and a big play on recovering US economy, Europe. He favours both these sectors above banking. However, private sectors banks have corrected sharply and look good and attractive now but stay away from PSU banks, he says.Meanwhile Kothari advices to add quality private sector banks to the portfolio and from the NBFC space one can look at HDFC.He also thinks the entire software and healthcare sector will continue to out perform for the next 3-6 months on back of strong earnings growth, at least the largecap names, which provide a good investing opportunity. He is bullish on Cipla and believes the current acquisition could be EPS accretive. For more on their stock specific ideas