Nifty ended the week over 2 per cent up and the Sensex hit fresh highs of 2012 as the market cheered Samajwadi Party Chief Mulayam Singh Yadav's outside support to the UPA government.
Meanwhile, Finance Minister P Chidambaram cut withholding tax to 5 per cent from 20 per cent. The tax cut is for borrowing loans between July 2012 and June 2015. The move is likely to encourage debt refinancing via ECB and is aimed at increasing foreign inflows.
The recent political developments, stimulus packages from global central banks as well as government's thrust on reforms are likely to push the benchmarks to higher levels, say market experts.
Meanwhile, Finance Minister P Chidambaram cut withholding tax to 5 per cent from 20 per cent. The tax cut is for borrowing loans between July 2012 and June 2015. The move is likely to encourage debt refinancing via ECB and is aimed at increasing foreign inflows.
The recent political developments, stimulus packages from global central banks as well as government's thrust on reforms are likely to push the benchmarks to higher levels, say market experts.
"Firstly, there is a bit of short covering still on the technical side.
Secondly, Europe is underweight or neutral weight India, despite the
fact that we have received a large amount of fund this year. However, I
continue to believe that more funds will follow and people will change
their underweight stance on India. Therefore, this momentum will
definitely continue. Obviously, there would be bouts of profit taking in
between, but I see the overall trend up," he said to ET Now.
He is of the view that the best option right now is to start buying on dips in the market.
"You cannot hold cash anymore in your portfolios. If you are looking at sector-specific ideas, then rate cyclicals is what investors should be looking into right now. In this space, we like banks, autos and some of the capital goods companies," he said.
Ashith Kampani, Chairman, Cosmic Mandala15 Securities feels that the government's resolve to move ahead with reforms is a positive signal. "Therefore, whatever correction comes, or has come already, should be viewed as an opportunity for investing into this market," he said to ET Now.
Kampani is of the view Nifty below 5,500 would be a good opportunity to invest and investors should be diversifying from FMCG and pharma stocks into the banks and rate sensitives.
"If you look at the FMCG pack, ITC and HULBSE 0.34 % have been in over held position in many funds. Probably some rotation you might see from those stocks into the public sector banks, something like State Bank of India or some private sector banks like ICICI BankBSE 4.19 % or some financial services company," he said.
"One should look at automobile or capital goods because the moment more and more infrastructure names try to start their projects, they all will start looking good. I have been pretty gung-ho on Larsen & Toubro, I still remain in that. I am pretty positive on State Bank of India and I still remain positive on State Bank of India," he added.
"One of my oldest idea, which has been beaten down to hell, is Jain Irrigation. The stock we started talking at Rs 180 level is around Rs 60 now. They have got the approval to get fresh money, equity, into the company at this level and to me it looks no brainer. In banking sector you can look at Yes Bank which is a midcap idea," Kampani said.
He is of the view that the best option right now is to start buying on dips in the market.
"You cannot hold cash anymore in your portfolios. If you are looking at sector-specific ideas, then rate cyclicals is what investors should be looking into right now. In this space, we like banks, autos and some of the capital goods companies," he said.
Ashith Kampani, Chairman, Cosmic Mandala15 Securities feels that the government's resolve to move ahead with reforms is a positive signal. "Therefore, whatever correction comes, or has come already, should be viewed as an opportunity for investing into this market," he said to ET Now.
Kampani is of the view Nifty below 5,500 would be a good opportunity to invest and investors should be diversifying from FMCG and pharma stocks into the banks and rate sensitives.
"If you look at the FMCG pack, ITC and HULBSE 0.34 % have been in over held position in many funds. Probably some rotation you might see from those stocks into the public sector banks, something like State Bank of India or some private sector banks like ICICI BankBSE 4.19 % or some financial services company," he said.
"One should look at automobile or capital goods because the moment more and more infrastructure names try to start their projects, they all will start looking good. I have been pretty gung-ho on Larsen & Toubro, I still remain in that. I am pretty positive on State Bank of India and I still remain positive on State Bank of India," he added.
"One of my oldest idea, which has been beaten down to hell, is Jain Irrigation. The stock we started talking at Rs 180 level is around Rs 60 now. They have got the approval to get fresh money, equity, into the company at this level and to me it looks no brainer. In banking sector you can look at Yes Bank which is a midcap idea," Kampani said.
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