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Last Updated : Jun 01, 2017 11:04 AM IST | Source: CNBC-TV18

Short-term correction in the market likely; select pharma cos positioned to rally: Quantum

Sanjay Dutt of Quantum Securities feels that the market could correct due to disruption on the back of GST, but in the long run, it will continue to rise.

With the market firmly placed in a bullish run based on multiple cues of good monsoon and better earnings among others, what could be the next cue for the Street from now on?

Quantum Securities believes that from a long-term perspective, prospects of the market look better and will rise higher. The research firm sees around 15 percent upside from the current levels for both Sensex and the Nifty.

However, the short-term could see some correction as disruption is likely due to GST in the coming few quarters, it said.


“From a fundamental standpoint, things are looking stretched at this point of time,” Sanjay Dutt, Director of Quantum Securities told CNBC-TV18 in an interview. He said that the Street was growing based on several assumptions such as earnings growth, among others.

Dutt continues to maintain that select pharmaceutical stocks, with good earnings as well as resolved US FDA issues are positioned to rally up. "The overall sector could also be looking to catch up in the market’s rally. Investors could actually take the help of a professional fund manager and choose a sector fund in this case," he told the channel.

Meanwhile, he also said that PSU banks continue to see action on a daily basis to tackle the bad loan problem. “I don’t see any reason why big PSU banks would have huge moves ahead and be re-rated as well…problems in the sector are being aggressively addressed now,” he told the channel.
First Published on Jun 1, 2017 10:22 am