Stress to stay on cap goods sector: Ashu Madan, COO, Religare Securities

In a chat with ET Now, Ashu Madan, COO, Religare Securities, shares his views on cap good space.

ET Now: What have you made broadly of the results that we are seeing the last couple of days particularly in the cap good space, like L&T?

Ashu Madan: It is not surprising. The stress was expected and is very much visible. There is a question mark on the future as well. If you look at the overall scenario, it looks challenging, which we can continue to see on the screen along with market reaction and stock specific reaction. It is a very muted response. We are cautious on the market because we feel that this rally is the uptick in valuation. And this is more of a sentiment driven hopes rather than any fundamental or any numbers which we are witnessing.