The Indian equity market at the start of the last trading week of 2016 broke Brexit day lows and even breached 7900 levels for a while.
Market expert, Nilesh Shah of Kotak Mahindra AMC, said there could be many events impacting the market – issues like US yields rising, short-term demonetisation pain impacting consumption and SMEs etc.
It is very difficult to gauge the bottom levels for the market but it has become more of a stock-specific market than sector-specific, said Shah, so if you get stocks at your prices then it is a good opportunity to buy. “At every price there are stocks to buy and stocks to sell,” he said.
According to him, market will not decline, forever, so it is time to accumulate stocks that you always wanted to have in the portfolio. It is a pendulum market, so look for companies with good management, good governance.
The positive impact of demonetisation could be a shift from unorganised sector to organised. Consumption, too, will recover going forward if the Union Budget allows more disposable income in hands of people.
With regards to taxation, he said, there are too many loopholes that need to be plugged which may get back money into the coffers of the government.
According to market expert Rakesh Arora, the volatility for market will continue to be high due to year-end low volumes.
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