Markets may overreact on Goldman case: Gaurang Shah

Gaurang Shah, Chief Manager, Geojit BNP Paribas Financial Services, on his views on the market.

ET Now: I just want to revisit purely what may happen tomorrow if the decision of the US SEC goes against Goldman Sachs?

Gaurang Shah: Well definitely a knee-jerk reaction will follow, there is no doubt about it.

ET Now: Do you see a lot of concern on your desk about Goldman Sachs case?

Gaurang Shah: I do not think so as of now. Of course, we have always been sentimental. We always overreact whether it is the Chinese market or whether it is the European market or the US market. Having said that if there is any negativity on the market, at these levels we are definitely not recommending our clients to put in any fresh money barring certain stock specific ideas. We have been advising clients to take off at 5400 or near about.

ET Now: Are you unwinding positions even now given this event? And of course, there is expiry?

Gaurang Shah: I will not give too much of weightage to this particular event that is going to unfold, but definitely we have been advising clients to take some money off the table purely from a short-term point of view and waiting for an opportunity on the lower side to enter again, may be sub 5250-5200 levels.