Is the market poised for a sustained rally ?
Here are some takes from Business leaders on the sustainibility of Sensex, from here onwards.
By ET Bureau |
Parag Parikh,Chairman, Parag Parikh Financial Advisory Services
I do not think that markets will go up from here. A 500-point jump in Sensex on a single day does not necessarily mean that the rally is sustainable. The rally seems more like a cheaters��� rally where retail investors get trapped.
Investors should not get in and out of the market based on a day���s movement. The market is witnessing large amount of speculative active and retail investors should be careful in putting their money. At the same time, long-term investors should not be worried about the markets on a daily basis.
Vikram Kotak, CIO, Birla Sun Life Insurance Company
We believe that inflation has peaked. Equity markets, at current valuations, have almost factored a slowdown in GDP growth. However, they are not considering interest rate easing, which will positively impact corporates��� operational performance and investment climate.
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The NSG waiver will provide economic and business opportunities over the next decade, worth as high as $100 bn, encompassing many sectors like construction, material sourcing, equipment, power, etc. We believe markets are likely to trade in the range of 2000 points with an upward bias. Rasesh Shah,CEO, Edelweiss Capital
On the whole, there was an overdoing of ���gloom-doom��� over the past eight months. The doom phase seems to be phasing out slowly with moderation in inflationary pressure, cooling-off of crude prices and the revocation of the 34-year nuclear trade embargo. We expect the market (currently in an ���under-invested��� mode) to have a positive momentum over the medium term. The only negative factor now is the lack of interest shown by foreign portfolio investors.
Manish Sonthalia, Vice-President (Equity Strategy), Motilal Oswal Securities
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I think that markets should sustain the rally as the macro-economic outlook seems to be improving. We are positive on the markets right now, barring few hiccups. Markets can witness around 10-15% upside in the short term. The rally could largely be led by interest rate-sensitive sectors. We think that select stocks in the PSU banks are at attractive levels. At the same time, commodities are poised to go down. Interest rates seem to have peaked for the time being at least, and even the inflation is showing signs of softening. Investors can also look at good stocks in the capital goods sector.
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