With the micro and corporate newsflow now out of the way, the market is clearly going to take cues from what is likely to happen in terms of goods and services tax (GST) and interest rates is the word coming in from Dipan Mehta, member of BSE & NSE.
For several months now global cues have become less important especially with regards to its impact on domestic market, says Mehta. The market is now more focused on if the government will be able to hold a special parliament session for GST and if there is a case now for RBI to cut interest rates etc.
Talking stock/sector specific, he prefers the private sector banks over public sector banks and also midcap IT over largecap names.
As long-term investors one should look private banks and NBFCs that have eaten into the growth of PSBs and so they should not be part of ones core portfolio holdings, says Mehta.
According to him instead of having exposure to largecap IT, one should look at midcap companies that have performed better.So far the numbers of oil marketing companies have been spectacular but going forward there could some challenges in terms of growth and so Mehta is underweight to middle weight on them.He is not very excited with prospect of government mulling in 100 percent FDI in rubber and coffee as such because government seems to have liberalized whole host of sectors but it is not really making any difference albeit improving sentiment a bit. Changes on the ground levels will take long terms so does not advice buying into these spaces as of now. For more details from the interview watch video
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