Not surprised by mkt upmove; like industrials, autos: Pros

Taher Badshah, Motilal Oswal AMC, Sudarshan Sukhani, s2analytics.com and Prakash Diwan, Altamount Capital Management spoke to CNBC-TV18’s Latha Venkatesh and Nigel D’Souza on the outlook for the market going forward.Indian equity market posted strong gains through the day. The Nifty closed at 8,176 and the Sensex above 27115 supported by oil & gas, banking and auto stocks.Badshah says the market pullback was not such a huge surprise because a month back the market was grappling with fears of poor monsoon and a notably shift from India to China markets but now some of these factors seem to have reversed. Start of the monsoon has been good, China has corrected over the last few days and Fed’s decision decision shows that interest rate hike of 25 basis points would come by the end of the year. Therefore, all this could have added up to the improved sentiment.  Moreover, the market too sort of consolidated around 7900-8000 level to reconcile with the sluggish corporate earnings. When asked if buying into equities now would be a good investment, Badshah says one will have be choosy because there individual stories that are doing well in terms of earnings, growth momentum and performance. So there are opportunities across sectors that can be looked at.Badshah is not so bullish on the commodity complex and thinks it is still reasonably weak. The import duty hike on steel products does not necessarily mean good times are returning for the industry, he adds.However, from an investment buy perspective if one were to look at last quarter earnings and the market performance during the correction, some of the good quality industrial names from both light and heavy engineering stand out. So, one could look at these segments as investment opportunities. In terms of tactical buys, one could look at consumer discretionary and FMCG names that have corrected. According to him autos too will start looking good post monsoons. There are also stray opportunities available in ports and housing finance space, he adds.Meanwhile, for Sudarshan Sukhani of s2analytics.com Bajaj Auto and Hero Motocorp would make good tactical buys for tomorrow.