Talking about the outlook ahead of the market, the managing partner and Cio Gurmeet Chadha of the Complete Circle says that there has been a lot of correction in cement stock, capital goods sector but their valuation still looks expensive. In view of the budget, I have more inclination in energy, railway, defense capex. The valuations of energy, railways, defense have become unique.
Talking on the auto sector, Gurmeet Chadha said that trust in M&M has increased more in this sector. Correction has been seen in stock. The valuation of the stock seems quite relevant. Volume growth growth is large in the company market leader. The leadership of M&M in SUVs is also increasing considerably. We have a very old holding in this sector. Sona BLW’s stock is also very much liked in the auto sector. The auto analysis segment also looks good.
Market no longer reacts much on the budget
Talking about the expectations from the budget, Gurmeet Chadha said that the Indian market has discounted the budget for many years. The budget comes in the market for 1-2 days after the budget. Expectations from the budget are low, so perhaps the budget may give positive surprise. The market no longer reacts much on the budget.
Midcap IT results are good
Talking on midcap IT shares, Gurmeet Chadha said that the results of midcap IT have been good. The market is making different stance on earnings. Companies whose results are coming better are seeing good moves. At the same time, the pressure is also clearly visible in those whose results are disappointing. I believe that do not only look at the earnings, if the valuation of the stock is good and earning inline is coming, then they can be invested.
Sikkal Slodown in FMCG sector which will be further review
Talking on HUL shares, he said that if there is a tax cut in the budget and if the government is tilted towards the rural sector, then companies that are working in the rural segment may have a slight speed. Although HUL Has been underpapering for 3 years. This stock has not participated in the entire rally. The negative commentary of management, valuation high, single digit volume growth is many reasons due to which there has been pressure in the stock. The FMCG sector is not Slodown Structural but Siklakal.
The FMCG sector has a Siklakal Slodown which will further revive. Because of that, the FMCG sector looks attractive to us. In our portfolio Tata consumer Is a share of Jomato We have purchased in the fall. Travel and tourism We also consider in conjunctival basket.
Stock Market Correction: Correction pain in the market is very deep, problems in credit growth of big private banks: Alok Aggarwal
(Disclaimer: The ideas given on Moneycontrol.com have their own personal views. The website or management is not responsible for this. Money control advice to users to seek the advice of the Setted Experts before making any investment decisions.