Markets will remain range-bound in August: Rajat Rajgarhia, Motilal Oswal Securities

In a chat with ET Now, Rajat Rajgarhia, MD-Institutional Equities, Motilal Oswal Securities, shares his outlook for the market.

ET Now: For the moment the market mood is evident, which is that we are not going anywhere. Your view?

Rajat Rajgarhia: It is good that after the kind of 20% move between January and June, we are seeing the markets consolidating. This is something positive.

But what has taken everyone by surprise is the change in the sectoral rotation. A lot of the exporters — primarily pharma, technology — have been big performers over the last two months, and many of the domestic cyclicals have seen good moderation.

Generally, the markets typically slacken from mid-July till August. Beginning September, you start seeing lots of action coming back into the markets. This happens because many investors in the West return from vacations and start positioning for the second half of the year.

So, in August, we will see markets remaining range-bound. The good thing is that they are still holding on. They are not seeing any worthwhile correction.