Over the long-term the combination of liquidity and improving fundamentals has made the Indian equity, as an asset class look better and bette,said KR Bharat, MD, Advent Advisors.
The pre-election rally will continue, the euphoria will continue immediately post elections followed by a prolonged process of profit taking and correction and an initiation of a long-term bull market which will start in first or second quarter of calendar year 2015.
KR Bharat, MD of Advent Advisors is bullish on IT, healthcare and auto ancillary sectors.
The dampening factor, however, will come into play sooner than later. The euphoria will be ebbed by other pressing factors, says Advent Advisors‘ KR Bharat.
“I think the 2014 election is going to be decided between the ages 18 and 30 and not by over 30 years of age. I think they will decide who forms the next government,†said KR Bharat of Advent Advisors.
KR Bharat of Advent Advisors prefers UltraTech Cement from midcap space which will give positive returns.
Advent Advisors' KR Bharat says that the current rally in the market is driven by liquidity and not by fundamentals. He advises on investing in fundamentally rich stocks. However, he also sees a secular bull run in the long-run.
KR Bharat of Advent Advisors believes the focus in the upcoming RBI policy will be on inflation. If there is repo-rate hike, the markets could be disappointed and sell off for 2-3 days, but the power of liquidity is so strong that the market will overcome the disappointment quickly, and the push towards making new highs.
KR Bharat of Advent Advisors feels that ITC may outperform because lot of its products are reasonably recession proof.
KR Bharat of Advent Advisors is cautious on financial services because there is a very strong link between banks and how the economy is doing because the banking sort of has a multiple growth effect to the growth in GDP.
KR Bharat of Advent Advisors is bullish on IT sector. 'I do not see the rupee appreciating remarkably from here and therefore it is going to be a reasonably good period for the IT sector," he adds.
In the present scenario, markets will be volatile and will offer a lot of temptation, but the next three-six months will be difficult and challenging, so long-term investors must resist temptation to enter the market now, says KR Bharat.
The Indian market has been jittery due to global as well as domestic issues. KR Bharat, managing director of Advent Advisors says, the worst is not over yet. He feels it is just the beginning of the slowdown and there is more downside to come.
In an interview to CNBC-TV18, KR Bharat, MD of Advent Advisors said, today there is an acknowledgement that there is a problem in the US and a bigger problem in the Europe. According to him, the market will improve first before the next level of pain comes in.
The Sensex shut shop at 17,560, with a 53 point gain despite stable global markets. Experts see a new rally starting from August. They also believe that India remains a great market for stock-pickers as its fundamental growth prospects are still extremely strong.
It's been a disappointing start to the trading week, high crude prices and domestic political uncertainty dragged the markets deep into the red. But hopes of a patch up between DMK and Congress helped erase some of the losses.
KR Bharat, MD, Advent Advisors view on auto sector.