Uncertainty to keep mkts choppy for 3-4 months: IDFC Securities

Demonetisation is likely to put the market into a period of uncertainty which can last for 3-4 months, says Anish Damania, CEO and Head, Institutional Equities at IDFC Securities. Once the amount of money coming back to banks by December 31 is clear we should see some stability coming into the market, he adds.He sees selling by Foreign Institutional Investors (FII) continuing for some more time. FIIs are concerned about an earnings downgrade due to demonetisation.
Demonetisation may be structurally positive for India, but it may weigh down on the country for a few months, says Damania. He has rejigged his portfolio, downgrading banks and financial companies from overweight to neutral. He has also revised his Nifty target to 8,100 from 8,900 points till March 2017.Watch video for more.