Indian share industry benchmarks BSE Sensex and Nifty 50 have been witnessing volatility amid the second COVID-19 wave. Due to this, foreign institutional investors (FIIs) turned net sellers in the month of April, right after becoming net purchasers for six consecutive months. Sanjiv Bhasin, Director, IIFL Securities Ltd, told Surbhi Jain of TheSpuzz Online in an interview that the US and other created markets outperformed in the preceding month, which encouraged close to term shift of revenue. In April, US stock indices surged up to 5.4 per cent, although Sensex and Nifty fell as significantly as 1.5 per cent. Sanjiv Bhasin mentioned that he is overweight on pharmaceuticals, banking sector stocks amongst other folks. Here are edited excerpts from the interview:
FIIs turned net sellers and sold Rs 10,000 cr shares in April right after remaining net purchasers for the 6 straight months. What fuelled FIIs promoting in April?
Fear and increasing Covid instances in 2nd wave. This also on the back of the US & other created markets becoming outperformers which prompted a close to-term shift of revenue along with ETF outflows.
How do you see Indian share markets in May? Do you see more downside, which sectors must investors watch?
Range bound, as neighborhood funds will help the downside with marginal promoting by foreign investors. However, as quickly as you peak in Covid instances which could be by the second week May, count on last week’s rally which could take you back to 15,000. Pharma, metals, banks, and autos will lead the rebound.
A record quantity of demat accounts opened in FY21, do you count on the very same in this fiscal and why?
There is no improved asset class than equities for the Indian context more than the next 10 years as development rebound strongly with double-digit GDP development which implies that in all asset classes equities will see retail interest increasing manifold.
Where do you see the Nifty 50 and Bank Nifty in May series? What would be an acceptable approach for traders?
Nifty 50 index at 15,000 level by finish May and Bank Nifty close to 34,250 levels. Do a SIP (systematic investment strategy) in pick stocks or indices.
What are your overweight and underweight sectors? Which stocks do you count on to provide decent returns in the 3-5 months horizon?
Overweight sectors are Pharma, Midcaps, Banks and Auto. While underweight sectors are Metals and Consumer Discretionary. The best stock picks for the 3-5 months horizon are Lupin, Escorts, RBL Bank, HDFC Bank, Tech Mahindra and NBCC (India) Ltd.
Going ahead, what things would drive the stock markets and what are the crucial dangers?
Missing the next wave of reopening which could see massive spending from buyers and unleash massive profit for Corporate India, worldwide liquidity in abundance and massive impetus to purchase stocks as worldwide markets led by the US hit new all-time highs. Rise in instances persisting, with vaccine drive seeing obstacles could derail the recovery temporarily.