Ahead of the Budget, Dipan Mehta, Member of BSE & NSE advises investors to shy away from downstream and upstream companies while buy into interest rate sensitive stocks.
Seeing 25-30 percent upside potential in private sector banks and NBFCs, he remains overweight on them. Furthermore, he is positive on FMCG and autos while being underweight on the entire PSU pack due to lack of clarity on some issues.
Meanwhile, in an interview to CNBC-TV18, he shares concerns over a further sell-off in crude price hitting market sentiment.
Onto specifics, he feels JSPL may be underpriced going by fundamentals. Investors can buy into the stock at current market price with 2-3 years horizon.
Below is the verbatim transcript of the interview:
Q: Do you get a feeling that the worst is over or do you feel that we are vulnerable to one more downtick if there is some kind of risk aversion that again takes place globally?
A: We remain vulnerable to any event which takes place globally and if there is further selloff in crude or any other major asset classes over there or if there were some unusual events to take place globally, certainly we will get impacted as we have seen over the past few weeks or so. However, assuming that global markets are getting back to normalcy, we are seeing our market also pick up rhythm on the upside and the correction that we have been waiting for does seem to be over and done with. But few more trading sessions where the market maintains these levels, the more confidence will come that bottom has been put in place from where we could look at scaling back to the earlier highs.
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