Not seen positive triggers this earnings season: Prakash Diwan, Altamount Capital

In a chat with ET Now, Prakash Diwan, Director, Altamount Capital Management, shares his views on market outlook.

ET Now: The mood spoiler on Friday was really the global setup. Foreigners have turned net sellers in the cash market and US economic data is also not that encouraging. Should one be wary about global cues?

Prakash Diwan: Global cues have been slightly discomforting since quite some time. But we have started reacting to it or seeing significant reaction to it now. That is primarily because we are also coming to the end of the earnings season and there is really not much of positive triggers that are in store.

Also, what global cues might indicate is that it could be a shift for all emerging markets. India has been disproportionately favoured in terms of the flows that we have seen and it has done very well compared to the global indices. Possibly we would be the first where there would be a pause but that does not mean it ends out here. We will probably see whole new emergence of midcaps after the earnings season because things have started looking expensive and things are looking cheap.

You have got a polarised kind of a situation. It is just a consolidation phase. You could probably still lose 200 points on the Nifty though and I hope that happens because that would get the buyers back and once that happens, we would see that kind of buying for the long haul and that could stay back.

ET Now: What is looking cheap in this market because in the last six months, everything has moved up?

Prakash Diwan: On the basis of relative valuation, there are lots of sectors which have not got that spunk. You look at fertilisers, you look at agri, those are small pockets. You will probably see some consumer names come back, Pidilite, Bata, these have not really caught up with the same fervour.