HDFC Secs bullish on cap goods, telecom, banks
Deepak Jasani, Head of Retail Research at HDFC Securities said that the marketshave risen stiffly. He added that the volatilityor the intra-day ranges are getting smaller.
Jasani believes that the markets could fall a bit, correct or consolidateover the next few sessions.
According to him, certain sectors could continue to outperform. He is bullish on capital goods, banks ,telecom and FMCG, to an extent.
*Excerpts from CNBC-TV18’s exclusive interview with Deepak Jasani:*
*Q: Just about a week to go before September 18, do you expect it to be volatile or do you think we could see a little more downside in the build up to the big event?*
A: The markets have risen quite stiffly. Over the last 13 sessions, we have gained about 1,700 points from the lows. So, probably the slope of the upmove could come down a bit. We could see the volatility or the intra-day ranges getting smaller. We could fall a bit, correct or consolidate, over the next few sessions.
Broadly, we feel that the downmove from 15,870 is the last downmove. It could get subdued into various portions. Whether 13,700 odd bottom, which we have seen is the bottom forever or whether we are going to retest that, is the only question mark in our mind. But, otherwise, we feel that once that downmove is over, we could be in for a very long and stronger upmove from thereon.
*Q: The manner in which the Indian market and Asia, reacted to a fairly important bit of news coming from the US economy, does that reiterate your faith that a new high can be set fairly soon by the Indian markets? *
A: It is a matter of timing after all. But even if you buy today, for example, we see a fall of 1,000 points. We could quickly recover that over the next couple of months.
In that sense, India is getting decoupled from the US and we are probably leading the other markets.
Q: Where would you be a buyer in these dips?
A: Certain sectors could continue to outperform. We are bullish on capital goods, banks, telecom sectors and FMCG, to an extent.
*Q: The performance or the resilience of the midcaps and the smallcaps has been telling over the past few days and maybe even today. Would that be your preferred area of purchase?*
A: With regard to small and midcap stocks, people have been quite bold over the last few months, because they have seen that after every fall, the next rise is much sharper.
There is not that kind of a panic happening in these small and midcaps. As a percentage of your total portfolio, it is probably the time to increase the proportion of small and midcaps as of total percentage.
