Muted earnings priced-in; new highs unlikely: Baliga

Independent market expert, Ambareesh Baliga clearly believes market is a consolidation phase and would wait for a correction to buy at levels of around 7800. He expects Nifty to see these levels around June.He does not see market making new highs on lack of major triggers till the monsoons, which would be the first trigger because weak earnings are already priced in. Second trigger could be rate cut, says Baliga.Yesterday's selling in the market could have been purely because of profit booking and for no particular reason, says Baliga. For the last 10 odd some stocks have been rallying because of money coming into them and have now witnessed profit booking, he adds.

He would like to top up on infra and capital goods stocks, which are expected to do well over the next 6-8 months. However, he does not recommend fresh buying into pharma but says would hold on to Sun Pharma and Lupin.For getting into PSU banks, one needs to wait for at least two quarters but is very upbeat on power space with NTPC as his top pick. He is also upbeat on With regards to private banks, he likes IndusInd Bank and expects it to come out with good numbers like DCB Bank.He does not advice getting into stocks that have rallied on back of hiked FII limit in them.