Market valuations can get further extended on expectations of reforms though he believes these elections have not opened incremental room for legislative actions.
Inderjeet Bhatia, Head of Research, Macquarie Research said there is a general expectation, both from the corpoates and investors that the third quarter will be a washout quarter because of the demonetisation move.
Inderjeet Singh Bhatia, Macquarie Capital Securities says the firm has reduced the target price by 47 percent to Rs 23 from Rs 43.
Macquarie remains wary of the capital goods space which has disappointed on the margins front in the Jan-March quarter. Order Inflows too have been muted during the quarter.
Inderjeet Singh Bhatia of Macquarie Capital Securities believes Crompton has been struggling with its operational performance. Although, the management seems to be indicating that the worst is behind them, he feels the company must give more evidence of a turnaround to enhance its prospects in the market.