The Nifty is not far off from hitting fresh record highs and if everything falls in place, the index could well hit mount 10K in the next financial year which is nearly 10 percent from current levels, UR Bhat, Director, Dalton Capital Advisors said in an interview with CNBC-TV18.
Commenting on specific sectors, Bhat is positive on white good makers which have been consistent performers on a year-on-year basis.
“Air conditions stocks have been a steady performer since 90s, and the demand environment remains fairly strong” he added.
Globalisation has played a crucial role in markets across the world and not just in India. “If there is a question mark on globalisation on account of restrictions on global trade will have a dramatic impact on international markets including India,” said Bhat.
US President Donald Trump will meet Chinese President Xi Jinping next week to discuss various issues from the difference over North Korea, to job losses.
In a tweet on Thursday evening, Trump said, "We can no longer have massive trade deficits and job losses," he wrote, adding in apparent reference to US firms manufacturing in China: "American companies must be prepared to look at other alternatives." Hence, any disruption in global trade could well impact markets across the globe.
“While Donald Trump has some views on his matter but what comes out from the meeting will be very important. Market participants will take cues as to what Trump does – will he take a hard stance against China or continue as it is,” said Bhat.
Commenting on the sharp appreciation of the rupee, Bhat said that rupee which has gained over 4 percent against the US Dollar is largely on account of large inflows from foreign institutional investors (FIIs) especially in the month of March.
The rupee appreciation is probably bordering on overvaluation which will impact on exports and IT & Pharma sector will remain under pressure, explains Bhat.
Talking about Capital Goods sector, Bhat is of the view that Capital Goods sector is on the inflection point and the big activity is happening in the Engineering Procurement Construction (EPC) sector which is worth looking at.
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