Global macro outlook very scary: Parag Thakkar

In a chat with ET Now, Parag Thakkar, Head-Institutional Sales, HDFC Securities, shares his market outlook.

ET Now: While we would like to believe that market activities currently is muted and maybe the fund flows suggest that DIIs were active yesterday to the tune of Rs 1,000 crores. I see a lot of bulk deals, too. Clearly, domestic institutions are willing to put in the money right now into specific names which could do very well in 2016.

Parag Thakkar: Yes, definitely that is the nature of market now because you have foreigners selling because of various factors. Middle East funds getting remitted because of oil carsh, their fiscal deficit constraint and many funds are facing redemption pressure.

On the global side, you have Chinese bond markets giving lot of jitters because there are rising defaults because of low commodity prices. So we do have a very bad and very scary global macro outlook.

If you see on the broad themes there are five or six very interesting themes emerging and, of course, roads, railways, power, transmission, renewable energy, defence all are being talked about and latest which I keep on talking about is clean and pollution-free India. That theme is presenting lot of opportunities where really good businesses are listed and they are benefitting.

It is a very interesting market, in terms, of midcaps and large caps.