Madhav Dhar is positive on select metal, banking and infra stocks.
The Nifty's nearly 10 per cent rally from Budget day's (February 29) low of 6,825 in just five sessions has caught many investors by surprise. But the vicious rally did not surprise veteran market investor Madhav Dhar, who had earlier suggested investors buy stocks when Nifty was around 7,000 levels.
Mr Dhar says that Nifty may have hit the bottom for the time being and it is likely to hit 9,000 levels by end of next year - an upside of nearly 20 per cent from current levels.
Speaking about what made him positive on Indian markets when Nifty was at 7,000 levels, he said: "I think the whole down-cycle last month (February) there was fear or extreme fear, valuations were neutral to attractive and I had a view that the growth scare in India is behind us. Expectations of this Budget (2016) were low," he added. (Watch)
Mr Dhar thinks Budget 2016 "was better than expectations".
"My gut instinct is that it (6,825) is an important bottom in India. I think earnings revisions are bottoming out," he said.
Mr Dhar said that the reversal in Indian markets is coinciding "with more fundamental bottom". "I think it is coinciding with growth-sensitive assets like metals and oil making important bottom. If that is true, then you will see an improving micros and macros in India and more than likely improving global macro backdrop."
"India is very well positioned in that environment," he said.
"I tend to be a medium to long-term investor. And I am completely in (invested). I don't know what the path is. But I think we will be 9,000 by the end of next year."
Mr Dhar is positive on select metal, banking and infra stocks, saying that these stocks will benefit from a cyclical upturn in economy.
Mr Dhar says that Nifty may have hit the bottom for the time being and it is likely to hit 9,000 levels by end of next year - an upside of nearly 20 per cent from current levels.
Speaking about what made him positive on Indian markets when Nifty was at 7,000 levels, he said: "I think the whole down-cycle last month (February) there was fear or extreme fear, valuations were neutral to attractive and I had a view that the growth scare in India is behind us. Expectations of this Budget (2016) were low," he added. (Watch)
Mr Dhar thinks Budget 2016 "was better than expectations".
"My gut instinct is that it (6,825) is an important bottom in India. I think earnings revisions are bottoming out," he said.
Mr Dhar said that the reversal in Indian markets is coinciding "with more fundamental bottom". "I think it is coinciding with growth-sensitive assets like metals and oil making important bottom. If that is true, then you will see an improving micros and macros in India and more than likely improving global macro backdrop."
"India is very well positioned in that environment," he said.
"I tend to be a medium to long-term investor. And I am completely in (invested). I don't know what the path is. But I think we will be 9,000 by the end of next year."
Mr Dhar is positive on select metal, banking and infra stocks, saying that these stocks will benefit from a cyclical upturn in economy.
Essential Business Intelligence, Sharp Market Insights, Practical Personal Finance Advice, Daily Fuel, Gold and Silver Prices and Latest Stories — On NDTV Profit.
