Traders to go short on stocks where Goldman has invested: Seshadri Bharathan

Seshadri Bharathan, MD & CEO, KSEMA Fincon Ltd talks to ET Now about his opinion on market and investors.

Given the weakness this morning, would you be advising clients to just stay out of the market right now? We have pretty much seen a down on expected lines, steer clear of any fresh positions?

It depends whether it is a trader or an investor. A trader has an opportunity, he knows that global news is bad. Goldman Sachs, again there are lawsuits being filed in the UK and Germany plus we have RBI policy announcement expected tomorrow where we expect repo and reverse repo to be hiked by 25 basis point and CRR to be hiked around 50 basis point, which is negative for the banks.

So we might see markets coming down today, so for trader, it is an opportunity where he can go short and then cover its short positions later on in a profit. While for an investor, he would be looking more at the quarterly results numbers and then take a call as to what he should do in each stock.

So right now, it is more of a trader and trader definitely knows that the direction of the market is down, so sense is that some of these stocks where Goldman Sachs has invested, traders would go short and make money in those stocks.

What's your sense this morning, you are also advising clients to unwind positions or just hold on a bit to see where this market finds its floor?

Definitely yes. The impact of Goldman Sachs has to be seen in the markets. Goldman Sachs hold stake in more than 30 companies in India, primary being IVRCL, Lanco Infra, CSC, Hindustan Construction Company, etc.

So we might see these stocks taking a sentimental beating today. Nothing to do with fundamental, it is more to do with sentimental, we might see some selling pressure in some of these stocks.