Not expecting a pre-Budget rally: Harendra Kumar, Elara Capital

In a chat with ET Now, Harendra Kumar, Managing Director-Institutional Equities, Elara Capital, shares his views on markets.

ET Now: What are you advising clients to do ahead of the Budget, the Rail Budget, the F&O expiry; to go in long or stay on the sidelines?

Harendra Kumar: Typically, if you look at historically over the last 13 years, the Budget month has given negative returns closer to 1.6%. So we are not expecting a run-up here as well. So whatever pre-Budget rally had to happen has actually happened. So I do not think there is a trade from here till Saturday, at least at this point of time.

ET Now: What could be a big sector and see a lot of volatility as well in the run up to the budget?

Harendra Kumar: I think infrastructure is something that we will see a lot of volatility because a lot of this has been priced in. Post budget, it could see a marginal selloff.