Market recovery has not been broad based: Pankaj Pandey

In a chat with ET Now, Pankaj Pandey, Head Research, ICICIdirect.com, shares his views on market outlook.

ET Now: Even though the month of November has been slightly choppy and sloppy, the market trajectory is on course to make lows and highs.

Pankaj Pandey: From a YTD perspective, markets have done nothing and in this particular quarters, the top performing sectors have been IT and pharma. For the FMCG, revenues have come down in single digit. Besides that, the surprise was auto wherein Tata Motors did the job for the entire sector.

So in that sense, we have not seen too much of a broad-based recovery and going forward also since these defensives contribute about 36% by weightage to Sensex and typically would be growing in the range of odd 15% to 20%, so 6% to 7% kind of growth is seen.

If there is some positive recovery, again you would see the markets delivering single digits or lower double digits. So that is what is possible over the next one year and the sectors which have continued to do well will continue to do well and I would not really want to jump to the cyclical part because I still believe that in a rising interest rate scenario, it is difficult to assume that we will see a broad-based recovery happening.