It was an interesting day for most of the economy stocks, like the PSU Banks, paint space etc., with bulls in control of the market. The Nifty ended up 94.45 points or 1.1 percent at 8635.65. The Sensex was up 292.10 points or 1 percent at 28095.34.
Parag Thakkar, HDFC Securities is not so upbeat on the current market rally and believes it to be more of panic buying than strong fundamentals.
The banking space also saw a huge rally today with the Bank Nifty closing at 52-week high but Thakkar does not think one should buy aggressively at these levels. So, will not participate in this kind of euphoria, he says.
The market rewarded all the stocks that reported exceptional numbers like Hitachi Home, Kalyani Steel, Havells India, Transformers and Rectifiers etc.
Stock specific, Thakkar is very bullish on Mold-Tek Packaging, which largely caters to paint companies. He expects the overall volumes for FMCG companies to go up and which in turn will benefit packaging companies.
From the earnings perspective so far, he is disappointed with IT but thinks they could make good buys on declines and also maybe be contra buys like the pharma space was sometime back.
Thakkar is overall bullish on the auto component space and also expects steel companies to report good numbers this quarter. He likes Kalyani Steel, which continues to reduce debt and report good numbers.
Mayuresh Joshi, Angel Broking also likes Transformers and Rectifiers and expects the overall transformer industry to do well.
In the same interview when SP Tulsian of sptulsian.com shared his views on the government’s decision to merge all PSU oil companies and whether the decision is feasible or not. According to him, there is no logic in such a merger and it is unlikely that it will ever happen, and even if it does, it will only create more mess, says Tulsian.
Talking on the stellar number posted by Hitachi Homes, Tulsian says these kinds of numbers are expected from most of the consumer durables because the June quarter is always good for them. However, it is not too excited and interested in buying Hitachi at current levels and expects Q2 and Q3 to be subdued for them.
For the entire discussion market and stock related action, watch video
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