In an interview with CNBC-TV18's Anuj Singhal, Nigel D'Souza and Sumaira Abidi, veteran broker Jagdish Malkani reflected on the market correction today.
Indian equities have been severely volatile of late, with the Nifty topping out at near 9000 in late January before falling more than 5 percent to reach nearly 8,500 before making a dash towards 9,000 again.
Today, markets were down about 1 percent. Malkani attributed the fall to the looming expiry as well as said it was "par for the course" profit-taking in the run-up the Budget.
Below is the transcript of the interview on CNBC-TV18.
Sumaira: What do you make of this sudden and sharp fall that we have seen in the market, is it just volatility in the expiry week, in the Budget week or is there more to this sudden fall?
A: It is F&O expiry, it has been a huge run up to the Budget and this is par for the course profit taking but the undertone is still good and it is some of the heavyweights that are taking it on the chin.
Reliance Industries Ltd (RIL) continues to be extremely weak, Reliance has been the big culprit in the index being as sluggish as it is and now it is HDFC , which has come off Rs 40-50 from the high. Otherwise you still got stars like MCX etc, which are still leading from the front.
Anuj: Just to continue that point on Reliance because at one point it looked like it was taking over the market leadership but the last two-three days the newsflow clearly has changed that. Should the market be worried about this stock now, maybe even around Rs 800 and any kind of impact on the market sentiment?
A: In this mood and as you said related to newsflow about this unfolding scandal etc so added to which oil and gas has been out of the run and Reliance in particular, who would have imagined a bull market like this with Reliance languishing like an eighth order batsman.
But yes, so you could have more pain but going forward, Reliance continues to be extremely attractive share for somebody who is looking for value and the leaders, there isn't that much of value to find it easily. So yes, for the contrarion, Reliance continues to be very attractive bet.
Nigel: You said that the undertone of the market is still positive, so would you be looking to buy anything currently or will you sit out, wait for the Budget to pass out and then you will get in?
A: No, if this correction continues, one should be -- for example, stocks like Hero Motocorp have come off because of the sell off by the Munjals. That already has nothing to do with today's fall off. I think there is a lot of value and the bull market is hardly going to go away in a hurry.
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