Markets may go up 25% over the next six months: Prabhudas Lilladher

ET Now talks to Sandip Sabharwal, CEO - PMS, Prabhudas Lilladher.

We are seeing that the global scenario absolutely yesterday what played out not a very pretty picture, the Eurozone crisis also completed intensifying, the tension between the two Koreas also playing up strongly, how long do you think this negative news flow coming in from Europe as well as from Korea will continue and which sectors do you believe will be impacted the most?

The news flow how long will it continue is difficult to predict but as far as the Eurozone goes, the problems in Eurozone are long term in nature. So they will play out over a period of time and that period of time is not a day or a weak, it is several months, several years maybe but the intensity of the news flow will reduce and once the market has discounted the worst which can happen in that area, axe off the break up of the Eurozone and the break up of euro which I do not think is going to happen.

The markets will take these things in their stride. As far as the Korean peninsula issue goes, that is very difficult to call but such things have happened a lot of times in the past and it finally does not go into a full fledged war. So hopefully it would not happen this time also. So if that does not happen, that will also play out. Overall, the markets have corrected from the tops due to all these news flows and at this point of time the way we are standing today, risk reward is going more in favour of investing rather than in favour of selling because from where we are positioned today, the likelihood of a downside is maybe 5% and the likelihood of an upside over the next six to seven months is 25% from where we are today.