CNBC-TV18’s Udayan Mukherjee says it is heartening to see that the market, while it makes new highs almost every other day, is punishing stocks for faltering fundamentals.
The only reason for the market to correct right now is to take catch its breath, before it takes off again, as there is nothing in negative lurking around the corner that could halt the equity market bull run. That’s the word coming in from CNBC-TV18’s Udayan Mukherjee, who believes a correction, if and when it happens, is unlikely to be a massive one.
Mukherjee says it is heartening to see that the market, while it makes new highs almost every other day, is punishing stocks with faulty fundamentals. He gives an example of troubled JP Associates, which is down nearly 60 percent this year, while the Sensex and the Nifty are up over 25 percent odd.
“This tells you the rally has not been an indiscriminate one. In the past you would see many rallies, which have often meant anything high beta has actually outperformed the Nifty. That has not happened this time around. So many infra stocks are down in the last three months. Real estate as a sector has got smashed up and any stocks, without mentioning names, which owed its past gains to political patronage of some kind or has not be able to fix their balance sheet despite this kind of buoyant equity market are getting punished,” he said.
He says the right kind of stocks are getting pick up by investors.