Weekly dossier: Samir Arora, Taher Badshah, Nischal Maheshwari and others on market trends

At first glance, it looks the Indian market is celebrating early Diwali.

Sensex rallied 5.75 percent while the Nifty50 rose 5.3 percent for the week ended November 6, compared to a 3.3 percent rise in the S&P BSE Mid-cap index, and about 2.2 percent gain seen in the S&P BSE Smallcap index in the same period, data showed.

The market now looks poised for rising higher. Top analysts express their views on the market trend and pockets of opportunities. Take a look:

Samir Arora, Founder & Fund Manager of Helios Capital (to CNBC-TV18)

The rally has been so uniform that it has not made us feel left out in any way if you just own the private  sector banks and other things without having to take active views on which new sector is suddenly coming up.

Everybody has been able to enjoy it in with whatever position they had or have.

I don’t believe that we can have a recovery without some genuine external thing driving it like jobs, investment, government spending.

Taher Badshah, CIO–Equities, Invesco Mutual Fund (to CNBC-TV18)

The markets are taking hope and conviction out of the massive performance that we have seen out of the corporate sector in India this quarter.

We have seen some very stunning numbers across market segments in most sectors. This is something which has surprised as well.

It is very surprising to see the kind of performance that corporate India has delivered. It is something which we have never seen even pre-COVID.

Nischal Maheshwari, CEO-Institutional Equities & Advisory, Centrum Broking (to CNBC-TV18)

You will find individual spots everywhere and so you have to be very stock specific. You have to understand that you are very close to an all-time high on the Nifty and so individually you will not find particular sectors where you will find valuable. But individual stocks you will find a lot of value everywhere.

Suresh Ganapathy of Macquarie Capital Securities (to CNBC-TV18)

Banks are extremely well prepared to handle any kind of risks, which could come - heightened risks that should come because of COVID. Therefore, from a two-three year perspective, I would be buying some of these names.

To begin with, at least the large quality private sector banks, even State Bank of India (SBI) for that matter and some of the top NBFCs are very well capitalised and also at the same time they have strong pre-provision operating profitability to provide for some of these bad assets which could come even if there is a second lockdown.

Randy Watts, CIO, O'Neil Global Advisors (to CNBC-TV18)

At O'Neil, the only emerging market we actually have rated in a confirmed uptrend and a strong buy right now in India.

A lot of emerging markets are either in an uptrend under pressure or downtrend. So, India has been the best of the bunch technically.

We do like HDFC, we do tend to favour technology more though and we do like Infosys and TCS. So, we do still really like the big Indian technology outsourcers and we do still favour growth even though I know that banks have been doing better.

Aman Chowhan, fund manager at Abakkus Asset Management (to CNBC-TV18)

Among financials, we clearly like companies, which are market leaders in their respective segments. So we have one of the fastest growing and best position in a housing finance company, we have the largest CD finance
companies, the insurance companies that we have has one of the best return ratios in the industry.

Right now there is a lot of sector rotation going on so financial is something that we have added in the past 2-3 months and going ahead we see the risk-reward equation in financials is much more favourable than other segments in the market that is the reason we are quite optimistic on financials.

Mark Matthews of Bank Julius Baer (to CNBC-TV18)

Our two preferred markets are the US and China and equities. That will remain the case regardless of the outcome of this (US Presidential) election. We were always neutral on India at least for the last two years.

The decline in coronavirus and the opening of states and the better numbers like auto numbers are all constructive for the Indian market, we don’t dislike it, we just prefer China.

Nilesh Shah, MD and CEO of Envision Capital (to CNBC-TV18)

Purely from a fundamental perspective, we have seen the best of margins for the large-cap IT and we have seen probably amongst the best of P/E multiples for the IT stocks.

One has to be a little careful on buying into IT. However, if there is some kind of correction down the line, I think one needs to revisit the secular growth story of IT and be more focused on that and maybe then again there is a buying opportunity there but for now, one has to be careful on the large-cap IT names.

Jonathan Schiessl, Emerging market strategist (to CNBC-TV18)

Equity markets are looking through the short-term noise and are assuming that whoever gets in. We are going to see another wave of stimulus to come. Investors should have a good weight in sectors that have done well during the COVID period like IT, pharma and some of the e-commerce related stocks.

Arvind Sanger of Geosphere Capital (to CNBC-TV18)

Purely on COVID, I don’t think we will get a pullback. The election uncertainty and other factors could cause that but my view is that on purely COVID – I do believe that some of the corrections last week were also caused by virus resurgence in the US and in Europe. COVID at this point is going to be competing for attention and COVID-related economic impact will be competing for attention with vaccine-related news which should be moving into the later stages. So I think it will probably may a rangebound market for a little while but I don’t think it will cause a huge sell-off.

Disclaimer: The above report is compiled from information available on public platforms. Moneycontrol advises users to check with certified experts before taking any investment decisions.