With earnings season nearing its end, there are many stocks in the market that have reacted negatively by 5-10 percent post their results. Motilal Oswal believes that this reflects how some of these stocks, in the ongoing bull phase, were not factoring in reality.
“The market, in its own wisdom, is trying to punish those whose valuations are not in sync with prices,” Rajat Rajgarhia, MD-Institutional Equities at Motilal Oswal Securities told CNBC-TV18.
So, what should be the approach for an investor from now on?
“This will remain a bottom-up stock-picking market, which has been the trend since 2008…focus must be on companies which are building up blocks,” he told the channel.
Pharma stocks rallied on Tuesday post good results from Aurobindo Pharma. Rajgarhia believes that Aurobindo Pharma’s management is confident of recovery in growth.
On L&T, he believes that the company's guidance of double-digit growth is commendable. "Public capex has been the driving force of economy…L&T has invested for many years to build blocks in this sector," he added.
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