It was the first real weak session for the Indian indices in March - both foreign and domestic investors turned net sellers making the market end at the day’s lows. The benchmark indices saw a one percent cut with the Nifty struggling to hold 7,450.
Market expert Ajay Bagga says selling from foreign institutional investors (FIIs) brought down the largecaps and in turn put pressure on the market, adding that basically there is no fundamental catalyst for the market to go up.
So far, India has been beneficiary of the FII inflows into emerging markets and the moment they show signs of drying up, our market falters, says Bagga in an interview to CNBC-TV18.
Bagga is still cautious on the market and advices conserving cash and waiting for lower levels to enter. According to him bottom may have been reached but one is not so sure – we are still vulnerable to FII flows.
According to him market was over shorted and is now moving towards becoming overbought, so it is good to be cautious.
Talking on the FOMC meet, he says it is unlikely that the Fed will hike rates but the market will be keenly watching for the Fed commentary on future hikes.
Sectorwise, he is mildly posi tive on public sector banks and expects them to give good returns from a 1-2 year’s perspective but could correct in near-term. The Q4 slippage no will be more and so there could be more pain for them is near-term.
With regards to pharma, he thinks government’s move to ban fixed dose combination drugs was in good interest of the consumers and is overall positive on the sector. However, FDA issues for them will persists for some time, so one should stay with largecap names that have good managements. For the entire interview, watch more.
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