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Too much optimism over Budget; correction soon: Dimensions

Srivastava is advising investors to be cautious while investing in midcaps as the gains in quite a few are unwarranted

Ajay Srivastava of Dimensions Consulting expects the market to correct in January as he feels the market is getting too optimistic about the macro recovery and about the upcoming Budget.

Ina n interview to CNBC-TV18’s Latha Venkatesh and Sonia Shenoy, he says the excise duty hikes in fuel is a clear indicator of the stress being faced by the government in meeting revenue targets.

Srivastava is advising investors to be cautious while investing in midcaps as the gains in quite a few are unwarranted.

He is bullish on auto and cement and is negative on IT, which he sees underperforming the market in the coming days.

He feels state-owned banks in general are better trading bets than investment bets, though a handful of them may outperform privatye sector banks. He says much of the margin expansion for companies is being driven by lower raw material costs.

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