Geopolitical concerns are short-term triggers that cause corrections in the market but the broader trend will remain intact, Umesh Mehta, Head of Research, Samco Securities, tells Moneycontrol’s Kshitij Anand in an interview.
Q. The Nifty came within striking distance of hitting fresh record highs but geopolitical concerns capped the upside. Do you think we could hit fresh record highs in the coming week, or will these tensions derail the rally?
A. Geopolitical concerns will certainly not derail the bull market rally, rather any kneejerk reaction would be a buying opportunity for investors.
Geopolitical concerns are short-term triggers that cause corrections in the market but the broader trend will remain intact. The Indian bull market will take its own sweet time correcting. In general, 2020 will be far better than in 2019.
Q. What important levels should one watch out for in the coming week?
A. The 12,130 level should be a strong support to watch out for in the coming week. A good amount of profit booking can emerge if markets cross this level on the downside.
Q. Crude oil prices jumped in the week's last trading session. Which stocks are likely to benefit or be impacted the most from this rise?
A. ONGC and Oil India are likely to benefit the most from a rise in crude prices. Higher crude prices will entail higher price realisations for these players.
Q. Any important events which one should watch out for in the coming week?
A. There will not be any material movement in bond yields, currency and exchange rates before Budget 2020 in February. However, the signing of phase one deal between the United States and China would be a key event for the markets to watch out for in January.
Q. What are your expectations from Budget 2020 from an investor point of view?
A. The government will bring out carrots for the secondary market so that they are able to execute their disinvestment targets. This is a certainty that will at least keep the investor community happy.
What then actually comes out in Budget 2020 is anybody’s guess. Since the gross domestic product (GDP) rose by a mere 4.5 percent in the third quarter and consumer confidence is at its lowest, the government will likely try everything in its capacity to revive the economy.
Disclaimer: The views and investment tips expressed by investment experts on moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
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!
Find the best of Al News in one place, specially curated for you every weekend.
Stay on top of the latest tech trends and biggest startup news.
