Rupee may head to 68-70/$ in short-term; sell Marico: Emkay

The market is down 3 percent year-to-date and Dhananjay Sinha, head - institutional research, Emkay Global Financial Services, says there is a possibility Nifty may remain flat for some time. While the market has rallied 40-45 percent in anticipation of earnings growth in the past 1-1.5 years, in reality earnings growth has been flat and hence the market now looks expensive, he told CNBC-TV18.

Earnings surprises continue to be negative, he adds and there are downgrades happening. Also global headwinds remain with the slowdown in China and the US Federal Reserve policy later this week, he says. So, from a global as well as a fundamental point of view, it cannot be an unidirectional market, he adds.

Sinha also sees rupee weakening to 68-70 per dollar in the short term.

Stock-specific, he is bullish on Bharti Infratel. However, he is generally underweight on the telecom space. According to him, because of 4G expansion and Reliance Jio getting into the business, competition will intensify. Hence, he is cautious on telecom service providers, but believes telecom infra players can grow.