Time to start nibbling; buy cos with earnings visibility: Pros

The market on Thursday continued swinging wildly through the day 30-share BSE Sensex fell 99.83 points to 23962.21 and the 50-share NSE Nifty declined 32.50 points to 7276.80. The sentiment in the market remained weak.To talk on whether this is a good time to enter the market and build portfolio, CNBC-TV18’s Latha Venkatesh and Anuj Singhal spoke to market experts Anish Damania, IDFC Securities and Jai Bala of 1857 Advisors.Damania says construction of portfolio is not about deploying the cash all at one go and according to him the current correction in the market is a healthy correction one, where one can look at buying stocks with good earnings visibility. Earnings momentum is on an upswing believes Damania aided by low commodity prices leading to margin expansion, and going forward with government spends expected to increase, 7 th Pay Commission come in - all this could translate into growth in topline for companies. Bala says they had pointed out in November itself that there was a possibility of Nifty forming a base around 7225. According to him 7225-7190 is an important level. However, once 7605 is taken out and then the December high, one can be assured that the decline that started in March’15 is coming to an end, says Bala.So, it is time to start nibbling in, says Bala. Talking sector specific, Damania says banks with larger corporate exposure should be avoided, while Bala is bullish on Karur Vysya Bank and Indusind Bank, which are holding pretty well.  For the entire discussion, watch video