India best market to be in from 2 to 3-year perspective: Sanjay Dutt, Quantum Securities

In an interview with ET Now, Sanjay Dutt, Director, Quantum Securities, shares his views on the markets. Excerpts:

ET Now: What is spooking the market right now? Do you think crude and ambiguity on MAT seem to be an adorning factor?

Sanjay Dutt: I am not surprised because I was very clear that the near-term outlook is bearish. So, it is a mix of factors. The markets ran much ahead of fundamentals, earnings are bad and the MAT issue is plaguing.

This was the much needed correction because we have had this one-year post election rally because of PM Modi and his government being elected. Now it is the time to walk the talk and that is what the market is experiencing because earnings ultimately drive prices and often the keep prices up. But they are not keeping pace. So, the recovery is a little away.

ET Now: It is easy to understand why the Nifty is at 8200. What should one do now?

Sanjay Dutt: I think one should start buying slowly. I have no second thoughts about that. It is going through a little bit of hiccups in the first 12 months of being in power, but from two to three-year perspective, there is no second thought that India is the best market to be in.

ET Now: People may argue that in the long-term crude may be headed downwards, but what if the short-term is long enough and crude stays above these levels for the next foreseeable future?

Sanjay Dutt: I do not think that crude has any implication whatsoever on the Nifty. It is just a mix of factors for which the correction was long overdue. Markets were heated, we were a way ahead of most emerging markets. This is a corrective process. This is a much-needed tactical correction that was needed after we had gone up for 5000 odd last year to 10000 and that is the process that is going on.