Taher Badshah, CIO-Equities, Invesco Mutual Fund said earnings from largecap and midcaps have been heartening, most in line with elevated expectations of the market.
The market today was dragged down by weak global cues and the Sensex tumbled 200-points. The midcap companies with high burden saw bigger correction. However, Oil marketing companies rallied post stellar Q3 by Indian Oil Corporation.
The 30-share BSE Sensex was down 249.52 points or 0.69 percent at 36,033.73 and the 50-share NSE Nifty fell 80.70 points or 0.73 percent to 11,049.70.
Giving the outlook for the companies that reported earnings and the outlook going forward Taher Badshah, CIO-Equities, Invesco Mutual Fund said earnings from largecap and midcaps have been heartening.
There have been some positive surprises from some of the pharma and IT names as well, said Badshah. So, it looks like the earnings season is falling in line with the elevated expectations of the market. However, there are more companies to report yet.
Talking about recapitalisation of PSU banks, Badshah said the capital is more of a survival kind than a growth capital and therefore it is hard to buy into them.
According to him, we are getting to the point where there is froth in some pockets in the midcap space, so one need not complete sell out of midcaps but incrementally the preference is moving towards the largecap space because there seems to be more value opportunities there.
Therefore, the midcap space does look a bit over extended and could be value buys on some correction.
From the metal space, Badshah said they would look at companies that have value addition and volume growth as the key drivers.
Ashwani Gujral of ashwanigujral.com says Bank Nifty is running out of players which can take it higher. Today, even IT fell, so if IT and banks both start to fall and RIL has an average day then the index is bound to correct. The fact there is nothing that is supporting the market because everything has run up and nothing has corrected. So now midcaps and largecaps both are correcting. Therefore, even if US does not fall a whole lot or goes up, momentum on the downside for our market is picking up otherwise one should have seen buying.Experts S P Tulsian of sptulsian.com, Anand Tandon, Neeraj Deewan, Director, Quantum Securities, Mitessh Thakkar of mitesshthakkar.com also shared their view on the oil market space that saw some big buying today and other stock specific ideas.