Anand Tandon says the market is looking for a correction is absolutely justified because so far it has been a one-way rally.
Market expert, Anand Tandon and Sudarshan Sukhani of s2analytics.com in a chat with CNBC-TV18’s Senthil Chengalvarayan and Sonia Shenoy and Anuj Singhal spoke about the outlook for the market going forward.
Sukhani clearly believes market is still very volatile and so it is best not to trade the index. Tandon says market is basically looking for a reason to correct and the Delhi elections could be just that reason. However, the impact of the elections could be only in the short-term, he adds.
Tandon says market looking for a correction is absolutely justified because so far it has been a one-way rally. Moreover, in relative terms the Indian market still looks attractive but in absolute terms it may not be backed by earnings growth going forward. He expects the earnings growth to be around 15 percent going forward.
Talking about the third quarter earnings – there have been disappointments across the sectors and upside surprises have been very few, says Tandon. Amongst the IT space some have reported better numbers than the others.
However, overall pharma sector has done well and will continue to perform especially the midcap pharmas. Although valuations are a bit high, it is one of the best sectors to be in both for the current as well going forward, adds Tandon.
Stock specific, Sukhani advices buying into Idea Cellular , M&M Financial on dips and Hindustan Zinc . TVS Motor too according to him has completed its correction and is resuming its upmove now, so it is a buying opportunity, says Sukhani.
When asked about Jet Airways , Sukhani says don’t enter at current levels, wait for a deep correction.
For the entire discussion watch video