1. Investors need to be cautious as large part of the market rally has already played out: IIFL

Investors need to be cautious as large part of the market rally has already played out: IIFL

A large part of the strong rally markets have witnessed lately has already played out and investors need to be cautious from here on, said Sanjiv Bhasin, Executive VP-Markets & Corporate Affairs, IIFL.

By: | Published: May 26, 2017 7:47 PM
If the euphoria driving the Indian markets spills over then there could be 50-100 points on the upside, but a large part of the strong rally markets have witnessed lately has already played out and investors need to be cautious from here on, said Sanjiv Bhasin, Executive VP-Markets & Corporate Affairs, IIFL.

If the euphoria driving the Indian markets spills over then there could be 50-100 points on the upside, but a large part of the strong rally markets have witnessed lately has already played out and investors need to be cautious from here on, said Sanjiv Bhasin, Executive VP-Markets & Corporate Affairs, IIFL in an interview to CNBC-TV18.

Bhasin said that current rally is being driven by a strengthening rupee and strong fund inflows from investors feeling left out of the meteoric rise Indian markets. He, however, said that this is a very good time to stock specific investors to buy stocks which have presented a positive surprise on the earnings front and for whom the future outlook looks encouraging. He gave examples of Ashok Leyland and Tata Motors and said that both these stocks have beat estimates.

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On whether investors should hunt for bargains in sectors that are booming like automobiles or in sectors such as IT or Pharma which are facing a recent glut, Bhasin said that the pharma sector and PSU banks will be in place and can be a good opportunity for investors looking to buy value stocks and could give rewards in the next four to six months.On private sector banks, Bank of Baroda & Canara Bank have surprised with upside on asset quality and net interest income and these two look very good amongst the private sector banks, Bhasin said.

On private sector banks, Bank of Baroda & Canara Bank have surprised with upside on asset quality and net interest income and these two look very good amongst the private sector banks, Bhasin said.

On ITC, which announced Q4FY17 earnings today with standalone profit up 12.3% on-year, Bhasin said that ITC may have helped to take the Nifty beyond 9600 points but a large part of the earnings already seems to be priced into the current market price and so investors should buy on dips. He said IIFL’s target on ITC is Rs 325 by the end of 2017, which it may achieve earlier as well.

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