GST, Land Bill crucial for FII inflows: Blue Ocean Capital

The foreign institutional investors (FIIs) inflows on Wednesday is likely a one-off on back of positive initial public offer (IPO) openings, says Nipun Mehta, Founder & CEO, Blue Ocean Capital Advisors. Speaking to CNBC-TV18, Mehta says he does not expect FII inflows to pick-up any time soon. Various reforms like the Goods & Services Tax Bill (GST), Land Bill and Bankruptcy Bill will be essential for pick-up in FII inflows, he adds. Mehta expects market to remain subdued over coming weeks and sees a 4-5 percent increase over a quarter term period. However, Prakash Gaba of prakashgaba.com expects market to continue its upmove with a target of 7888-7926. He is bullish on names like Aurobindo Pharma, Bharti Infratel, Hindalco and Tata Communication.Discussing commodity stocks, Mehta says commodities do not look stable till demand becomes visible. The slight upward move seen in oil on Wednesday does not indicate any change in the demand and hence should not read into much, he adds. For 2016, Mehta is positive on companies that will benefit out of the GST as well as infrastructure sector, which could see uptick in investments if Land Bill gets approved. Watch video for more.