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Last Updated : Jul 09, 2015 05:07 PM IST | Source: CNBC-TV18

Global news discounted; mkt to now focus on earnings: Pros

Devang Mehta, Anand Rathi Financial Services clearly believes market is giving an opportunity to accumulate because most of the global uncertainties like Greece crisis, Chinese market seem to be discounted an market is now looking forward to new trajectory of earnings, parliament‘s monsoon session.

The mood in the market seemed to be muted today with major selling seen in the midcap and small cap space. The Nifty closed below 8350 and the Sensex below 27,600. However, during the day the market seemed to be consolidating after yesterday’s fall.   

However, Devang Mehta, Anand Rathi Financial Services clearly believes market is giving an opportunity to accumulate because most of the global uncertainties like Greece crisis, Chinese market seem to be discounted an market is now looking forward to new trajectory of earnings, parliament’s monsoon session.

This quarter he expects private banks and capital good sector to report good numbers.

The market overall looks fairly expensive, says Nilesh Shetty, Quantum AMC says but one could look at select pockets from a stock specific perspective in spaces like automobiles, PSU Banks, two-wheelers, where there is still value left.

When asked to comment on stock/sectors from an earnings perspective, Shetty says relative to other sectors, IT is not that expensive and still offers value.  However, he clarified that the house does not focus on quarterly numbers and looks at sectors from a longer-term view. According to him the metal space too offers value but from a five year perspective.

Meanwhile, Mehta feels one can start accumulating largecaps like Larsen and Toubro which is a proxy to government's capital expenditure plans and also recommends buying into Yes Bank at current levels.

Currently, oil marketing companies are having a dream scenario with lower crude prices, government reforms, deregulation of petrol, diesel - so one can look at this space too, says Mehta.

The house also likes Emami and Bajaj Corp, says Mehta.

With regards to Essar, Mehta says for those who are already holding the stock can hold on back of current newsflow but if not, then one can look at other energy stock like Reliance Industries, which could be a big beneficiary of a rebound in the market.

Talking about Tata Motors, Shetty says it has come into their portfolio as a value investment since the house has a long-term perspective. While, Mehta says, although they still like the stock from long-term but from a short to medium term there are problems in most geographies they operate in.



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First Published on Jul 9, 2015 05:07 pm
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