Moneycontrol
Mar 23, 2018 04:18 PM IST | Source: CNBC-TV18

Upbeat on IT, pvt banks, consumption for 12-18 months: Pramod Gubbi

From a fundamental standpoint when the market corrects another 5-10 percent, the valuations will start looking reasonable again and would present a strong buying opportunity, said Pramod Gubbi of Ambit Capital.

CNBC TV18 @moneycontrolcom

Pramod Gubbi, Head-Equities, Ambit Capital talking about the impact of all that has transpired in the markets globally said with the number of sources of uncertainties increasing by the day, it is only likely that our market will become more volatile. We may veer to the extreme on both sides.

“Wouldn't be surprise if the market corrects from here on,” he said, adding that from the short-term perspective the technicals look fairly negative.

However, from a fundamental standpoint when the market corrects another 5-10 percent, the valuations will start looking reasonable again and would present a strong buying opportunity, said Gubbi in an interview to CNBC-TV18.

When asked which sectors he is upbeat on, he said IT has been their favourite sector for some time now and it has some more legs to go on back of good demand from the US. Rupee depreciation could be an added tailwind for the sector, he added.

The house is also upbeat on domestic economy facing sectors like private sector financials and consumption stocks. Look for banks with strong CASA and from the consumption look for companies that are likely to benefit from increased government spending going forward.

“So, IT, private sector banks and consumption spaces are good to go for another 12-18 months standpoint,” he said.

The house view is that Sensex at 30,000 is a fair value and at those levels market will start looking attractive form valuation perspective. At those level there would be enough margin of safety to buy into good companies, said Gubbi.
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