Indian share market benchmarks BSE Sensex and Nifty 50 have been witnessing volatility amid the second COVID-19 wave. Due to this, international institutional traders (FIIs) turned web sellers within the month of April, after being web patrons for six consecutive months. Sanjiv Bhasin, Director, IIFL Securities Ltd, instructed Surbhi Jain of Financial Express Online in an interview that the US and different developed markets outperformed within the earlier month, which inspired near time period shift of money. In April, US stock indices surged as much as 5.4 per cent, whereas Sensex and Nifty fell as a lot as 1.5 per cent. Sanjiv Bhasin mentioned that he’s obese on prescribed drugs, banking sector shares amongst others. Here are edited excerpts from the interview:
FIIs turned web sellers and offered Rs 10,000 cr shares in April after remaining web patrons for the 6 straight months. What fuelled FIIs promoting in April?
Fear and rising Covid instances in 2nd wave. This additionally on the again of the US & different developed markets being outperformers which prompted a near-term shift of money together with ETF outflows.
How do you see Indian share markets in May? Do you see extra draw back, which sectors ought to traders watch?
Range certain, as native funds will help the draw back with marginal promoting by international traders. However, as quickly as you peak in Covid instances which might be by the second week May, anticipate final week’s rally which might take you again to fifteen,000. Pharma, metals, banks, and autos will lead the rebound.
A report variety of demat accounts opened in FY21, do you anticipate the identical on this fiscal and why?
There isn’t any higher asset class than equities for the Indian context over the next 10 years as development rebound strongly with double-digit GDP development which means that in all asset lessons equities will see retail curiosity rising manifold.
Where do you see the Nifty 50 and Bank Nifty in May collection? What could be an applicable technique for merchants?
Nifty 50 index at 15,000 degree by finish May and Bank Nifty near 34,250 ranges. Do a SIP (systematic funding plan) in choose shares or indices.
What are your obese and underweight sectors? Which shares do you anticipate to ship first rate returns within the 3-5 months horizon?
Overweight sectors are Pharma, Midcaps, Banks and Auto. While underweight sectors are Metals and Consumer Discretionary. The high stock picks for the 3-5 months horizon are Lupin, Escorts, RBL Bank, HDFC Bank, Tech Mahindra and NBCC (India) Ltd.
Going forward, what elements would drive the stock markets and what are the important thing dangers?
Missing the next wave of reopening which might see big spending from customers and unleash big revenue for Corporate India, international liquidity in abundance and large impetus to purchase shares as international markets led by the US hit new all-time highs. Rise in instances persisting, with vaccine drive seeing obstacles might derail the recovery briefly.