Ajay Srivastava of Dimensions Corporate said that clarity needs to emerge out of the market’s moves. He recommends staying away from pharmaceuticals for now.
After witnessing weak moves in the past week, the Indian market began the truncated week on a strong note. Benchmark indices were trading three-fourth of a percent higher in the first hour of trade on Tuesday and the Nifty traded around 9,850-mark.
Midcaps continued with their positive momentum, while autos and metals gained the most.
But experts are cautious of the overall weakness in the market, particularly on the investors’ side. “The buoyancy in spirit of investors is coming down and fatigue is stepping in. There is a doubt among them whether the long-term story is intact,” Ajay Srivastava, CEO, Dimensions Corporate Finance Services told CNBC-TV18 in an interview.
In the current context, he recommends having a strategy of staying put. “Till there is clarity (on how the market moves), it is best to stay put with investments and not take any trade,” he told the channel. Speaking on the levels for the Nifty, he believes that the index could touch 9,700 before going to 10,000-level.
On a sectoral basis, Srivastava said that one must wait to see GST’s impact on NBFCs. “There is uncertainty and has no growth surprises on offer,” he told the channel. Most importantly, the fate of such companies or stocks would be seen if the liquidity situation starts to change at some level.
Meanwhile, pharmaceutical is a sector to keep away from. There is too much uncertainty and there’s doubt if it could take the market forward. A weaker rupee at 67-68 levels could make a case for review, he added.Watch accompanying video for more details.