Ajay Srivastava, CEO, Dimensions Consulting Had a long conversation with Moneycontrol on the future condition and direction of the market. In this conversation, he spoke about the recovery in the market in the last 2 days as well as its forward direction. He said that he is very bullish on the banking sector. Apart from this, multiplexes and retail companies and fashion related stocks can see good growth going forward.
He says that these sectors have been under pressure for a long time. Now the stocks of this sector can be seen recovering from the pressure. In this conversation, he said that sugar, cotton yarn, commodity tea and liquor industry can be seen to benefit further. They will get the benefit of depreciation of rupee. Export based stocks will get the benefit of this fall in rupee. Going forward, we will see good growth in exporting companies and companies related to engineering industry.
In this conversation, he further said that the ratings of companies related to multiplex, fashion ware and retail are currently at a very low level. Now it’s time to re-rate them. Stocks in this sector will get the benefit of the opening after Corona. The rupee-dollar ratio is presently giving good opportunities for the pharma company. Due to this, an increase in their exports can be seen.
FII sell-off will put pressure on banking stocks
There has been heavy selling by FIIs in the Indian markets amid weak global cues. Responding to this, Ajay Srivastava has said that such heavy selling in such a short time will put pressure on the banking sector.
Giving his opinion on the rally of the last 2 sessions of the market, he said that it is a big relief for the market. Some feel that the selling pressure from the FIIs will ease a bit. This news is a big relief for the banking segment. He further added that the market was substantially oversold. There is very little liquidity for investment in the domestic market, so one cannot say that this rally is for days.
Rising crude oil prices will affect consumption
Talking about the rising crude oil prices and its impact on the domestic market, he said that rising crude oil prices will affect the consumption of the country and ultimately its effect will also be reflected in the stock market. He also said that if the government tries to keep crude oil prices low, it will lead to an increase in consumption.
With a market cap of $ 3.16674 trillion, the Indian stock market overtook the British market
Where are the shopping opportunities in the market at this time? Responding to this question, Ajay Srivastava said that commodity is the best segment to invest in the current market condition. He has also said that we may soon see another correction in the market. If an investor has invested in commodities, then he should remain in his investment. Going forward, we will see strength in cash flows across all commodity companies. So there is no need to sell.
Ajay Srivastava is a supporter of maintaining a cautious approach to small and big banks. They say that their valuation is looking good at this time but there is a need to bet wisely. He further said that the banking sector is quite oversold at this time. Especially big banks but there is a need to be very careful while investing in banks but small banks are not good with investment.
,