The Indian equity benchmark on Tuesday outperformed most global markets. After sulking through the day, the Nifty closed the day up 19.85 points or 0.2 percent at 8528.55 and the Sensex was up 40.96 points at 27787.62.
Ashwani Gujral of aswhanigujral.com says one must not read too much into this rally because an easy part of the rally is over and now only experienced traders must trade.
It is a good time to book profits because earnings are likely to be volatile. Moreover, even if earnings are good, they are already priced-in.
So, only intraday traders must remain in the market, says Gujral.
With earnings in focus, market expert Ambareesh Baliga, SP Tulsian of sptulsian.com and Varun Goel, Motilal Oswal AMC shared their views on stock-specific action.
Both Tulsian and Baliga are impressed by Exide Industries' first quarter numbers. With the stocks still ruling at a price to earnings multiple of 18, he is positive on it.
Baliga is surprised that the stock corrected post a good set of numbers. He says it is a good buy even at current levels.
Tulsian was bullish on the PSU banking space at the start of the series but now recommends exiting the space post the 30-40 percent rally seen by most of the stocks. He expects massive profit-booking in them ahead of the expiry.
Tulsian is not positive on the oil marketing companies, as well as Gokaldas Exports at current levels.
Even Baliga is not upbeat on the PSU banking space in the short-term because of the massive rally seen in them. However, longer-term there could be upside, says Baliga.
Baliga also does not advise investors to enter PVR but says traders can look in hope of a sentimental prop.
Goel is positive on the oil marketing companies. He thinks they are undervalued and the various reforms initiated by the government like cooking gas de-regulation etc will be good for them. They are likely to deliver healthy returns on equity and see an earnings growth of 15 percent, says Goel.
For the FMCG space, the challenge is last year earnings growth was good because of a collapse in raw material prices leading to margins expansion but in the current year, the volumes will have to be good for them to report good growth.
The house, he says, is very positive on consumer durables and agro chemical space on back of expectations in revival in urban demand.
He also likes non-banking financial companies (NBFCs) and the mortgage space.Sharmila Joshi of Sharmilajoshi.com later in an interview to CNBC-TV18 shared her thoughts on the Wipro Q1 earnings, UltraTech Cement and overall IT space.
For the entire discussion, watch video
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