In an interview to CNBC-TV18, UR Bhat, Director of Dalton Capital Advisors discussed fundamentals of the market.
Watch the interview of UR Bhat, Director of Dalton Capital Advisors with Prashant Nair and Ekta Batra of CNBC-TV18. He shared his reading and outlook on the market and also gave recommendations on various stocks.
Commenting on specific sectors, Bhat is positive on white good makers which have been consistent performers on a year-on-year basis.
In an interview with CNBC-TV18, UR Bhat said that going ahead the US Fed meet and roll-out of the goods and services tax (GST) will act as a catalyst for the market.
According to UR Bhat of Dalton Capital, corporate earnings for the quarter would be much worse than expected due to demonetisation.
IT and automobile are the sectors to hide in at this time, UR Bhat, director of Dalton Capital Advisors said. Any bet on banks can be taken after December quarter results only.
Speaking to CNBC-TV18 UR Bhat, Director of Dalton Capital Advisors said that if the demonetisation woes taper off in the next 10-15 days, the market will get busy with other things.
Discussing market fundamentals on CNBC-TV18, UR Bhat said that a Donald Trump presidency will bring uncertainty in the market but the US policy is not likely to change dramatically if he wins.
If Donald Trump wins the correction won't be too deep but the market will remain volatile as a potential Trump victory has not been factored in, says UR Bhat, Director of Dalton Capital Advisors.
If the GST is passed, it would give a good opportunity for short-term traders to sell, says UR Bhat, Managing Director, Dalton Capital Advisors.
Watch accompanying videos of Investor Camp which held at Delhi in which UR Bhat of Dalton Capital Advisors and Ashwani Gujral of ashwanigujral.com shared their readings and outlook on the market and equities.
Biggest risk to the market is lack of FII inflows because post Brexit, there could be leadership changes in the UK which could lead to a risk-off, especially for emerging markets, so one must position oneself accordingly, says UR Bhat, Director, Dalton Capital Advisors.
Although the foreign institutional investors have been selling, domestic investors continue to support the market, said UR Bhat, Director, Dalton Capital.
UR Bhat of Dalton Capital says a turn in the investment economy -- likely a few quarters away -- and higher recapitalization figure is what the market needs for bank stocks to become ripe purchases.
UR Bhat, Director at Dalton Capital Advisors is of the view that one may see profit booking in PSU banks.
Sudarshan Sukhani, s2analytics.com says there are no shorts in this market and one needs to stay long in the Nifty
Market movements should not worry long-term investors, says UR Bhat, Director, Dalton Capital Advisors. He feels the bottom is near and Nifty can move higher from current levels.
Issues such as rising oil prices, taxation and uncertain monsoon have been weighing the market since it was 400 points higher than it is now, says UR Bhat of Dalton Capital.
Most people according to UR Bhat are overweight on spaces like autos, BFSI, engineering. However, one can now start nibbling into infra on back of government spending, he adds.
UR Bhat says the 4.2 percent fiscal deficit target is difficult to achieve but if government continues with its reform drive, market may pardon that number being missed.
In an interview to CNBC-TV18, UR Bhat, Managing Director of Dalton Capital Advisors shared his outlook on various stock specific bets and where the market is headed hereon.
UR Bhat, Managing Director of Dalton Capital Advisors is of the view that one may prefer private sector banks.
UR Bhat, MD, Dalton Capital Advisors believes there is further pain on the PSU banking front in addition to what is generally seen as NPA problems. In addition they will have to start toning down their growth rates because of lack of capital because the only one who supplies capital is LIC and that has been done to the hilt.
UR Bhat, MD, Dalton Capital Advisors is cautious about the hope trade. However, he believes the Modi trade is worth playing. He says cyclicals will start looking better on the hope that huge changes will happen.
If there are indications that there would be a decisive government in place then cyclicals are the one‘s which will offer one of the best delta says UR Bhat of Dalton Capital.