Rakesh Arora, India Head of Research, Macquarie Capital Securities believes the market is close to its bottom and the worries over China are a little overblown for the moment.
“We don’t think there is too much downside for Indian markets from the current level. Nifty staying below 7500 level on a sustainable basis is unlikely”, Arora says.
He pointed out that Macquarie’s GDP forecast for China is 6.7 percent for the current year which is not a big drop from 7 percent seen last year, adding that China is in a transition phase and the government should be able to manage well for at least 2-3 years more.
Arora believes that foreign institutional investors (FII) will soon start seeing value in the domestic market, particularly in large cap stocks with low risk weightage and start investing here. Similarly, domestic funds will also start coming in soon.
He is positive on certain consumption themes like automobiles and sector with government spending like infrastructure.
In the metals space, Arora believes steel would be an interesting story if all the government initiatives like import duty, safeguard duty, BIS certification requirement and minimum import price (MIP) are implemented as planned.
Deepak Shenoy, Founder, Capitalmind.in and Rajat Bose of rajatkbose.com also shared their view on specific stocks.Watch video for more...
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!
