Bulls are seen in the mood of Santane after seven days of boom. The Nifty has slipped below 23600. Bank Nifty is also seeing a decline of about 400 points. Midcap and smallcap are also trying for recovery. There is a boom in selected auto, power and metal stocks. Ashok Leyland shares ran around 3 percent. Banking, realty and telecom are also bright. But there is weakness in pharma. Dr. Reddy’s has broken about 2 percent and became the top loser of Nifty.
In such a situation, while talking about the front and direction of the market, Sanjay Sinha, founder of Citrus Advisors, said that mid and small cap declined more than large cap in the market. There have been two main reasons for this. The first of these is the very expensive valuation and the second reason is cash incident in the system. The cash in the system decreased significantly due to the selling of FII. There is still confusion about how the further attitude of FII will be.
Sanjay Sinha is of the opinion that the valuation has become cheaper after correction. Many pockets have shown more correction than necessary. The analysis of about 1100 top market cap shares shows that there are about 460 of these shares that are trading below their 5 -year price earning average. Liquidity has also improved in recent times. FIIs have also been purchasing for the last few days. Mutual Fund figures are also encouraging.
Time correction is still
He further said that the market will keep an eye on the benefits of the measures taken in the budget for Trump Tariff and Consumption Boost. There is a price correction in the market but time correction is yet to be done. Because we still need convision and confidence.
This stock got wings due to the news that emergency braking system is necessary in trucks and buses, what do you have?
Concern of growth instead of valuation of IT sector
Talking on the market, Sanjay further said that IT should look as a defensive sector. There is a concern for growth instead of valuation of the IT sector. He further said that RBI’s rate cut will continue. Further banks’ NIIs will be good but pressure on NIM is possible.
Sanjay is looking more attractive than non -ferrous. He also believes that there is no growth in FMCG in terms of valuation. The FMCG share range can remain bound further. Competition has increased considerably in food delivery. We should keep this in mind.
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