Five stock calls by Shankar Sharma

Recommending that domestic investors should invest in gold, Shankar Sharma, Global Trading Strategist at First Global told ET Now that global markets may witness sell-off in FY14.


"Market internals started to turn very bad from the middle of January and were almost identical to what happened in February-March of 2000. The index looks good while the broad market begins to hurt and that is precisely what happened from January onwards," Sharma said.

Sharma said that midcaps are not falling that much. "In the last three-four days of fall, midcaps have held up reasonably well because they have fallen a lot," he said.

In an interview with ET Now, Sharma shared his views on stocks and other assets. ET takes a look at five stocks that Shankar Sharma spoke on...

Tata Motors:

Sharma said that he has been negative on autos for at least two months. "I am very negative on Tata Motors because JLR has peaked in terms of what it can immediately deliver. It still has a long way to go if you take a two-year, three-year view, but unfortunately, the markets do not work quite like that and bottom is falling out of domestic business," Sharma said.

"All the good work on the JLR front is being gobbled up by the domestic side and our view is that Tata Motors is not a stock that should be significantly owned anymore. That view was from about Rs 300, it is around Rs 270 or Rs 265 right now," he added.

Sharma sees more downside than upside on the stock. "I have always said that I do not get emotional about stocks. So I have loved it for three years. But I do not love it anymore," he said.

United Sprits:

"For a reasonable time to come, a lot of good news is in the price, but again for a lack of other good alternatives, it is still not a bad bet. So let me not make the case that it is an absolute roaring sell because you have an open offer at that price of Rs 1440," Sharma said.

"Within the context of what is available, it is still okay, but if you are expecting it to go to Rs 3000 in a few months or even a year's time, I doubt that is going to happen," he added.

Bharti Airtel

Sharma opined that Bharti Airtel is an 'absolute sell' idea. "The entire telecom sector has been messy, which is why I always caution people not to bank on them," he said.

Tata Coffee - Defensive stock

"It is not a widely-owned stock. That it is a company with an export edge. It benefits from a falling rupee, it has a Starbucks tie-up which I hear is doing very well," Sharma said.

Sun Pharma:

"We are momentum people. We like stocks that go up and we hate stocks that go down. Remember it is not about Sun Pharma. It is whether I find things better than Sun Pharma. So if I do not, then stick with the winner," Sharma told ET Now.