Indian equities on the day of F&O expiry had a kneejerk reaction with the Sensex falling 465 points after the Indian army had conducted surgical strike at Pakistan's terror launch pads on Wednesday night, in response to militant attack on September 18 in Uri town of Kashmir.Surendra Goyal of Citigroup feels volatility could continue in the near term.
According to him, the market could remain volatile depending on the future course of events.
"Market view remains constructive with a target of 30,000 on the Sensex for March 2017 but geopolitical risks need to be watched out for," Goyal says.
Mahesh Nandurkar of CLSA says the risk of rising military tensions brought down the market by 2 percent.
He believes that the situation will be contained as the Pakistan army has rejected the claims made by the Indian army of surgical strikes.
Unless Pakistani forces take an aggressive stance, this dip will be prove to be a buying opportunity, he says.
Top large cap ideas are HDFC, HDFC Bank, IndusInd Bank, ICICI Bank, Reliance Industries, Power Grid, HCL Technologies, Sun Pharma, ITC, IOC, Ambuja Cements and Zee Entertainment, Nandurkar says.
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