The markets ending lower on Thursday, ahead of the long weekend, was an indication of a bull market correction that was not driven by any event, according to Dinshaw Irani.
"I think it's bull market correction which is happening. There are no specific negative events that are driving down the markets or giving you the trend," Irani, chief executive officer of Helios Capital Asset Management (India) Pvt., told NDTV Profit on Thursday.
This is not a price correction, but more of a time correction. On the valuation front, "we are slightly more stretched" in comparison with the past, and it is putting some doubt in the investor's mind, he said.
Large caps are in line with the past historic levels and there are few pockets that are very frothy even in this space, Irani said.
Dinshaw Irani (Source: Helios India website)
In terms of HDFC Bank Ltd., Irani said the "punishment was a bit too much" as the stocks are now cheaper than that of ICICI Bank Ltd., which was never the case before.
The CEO does not think the interim Union budget would be a major event, and said it would be more of an "extension" of the previous budget. He mentioned Finance Minister Nirmala Sitharaman's comments that there would be no major announcements.
Looking at the current markets and predicting the sectors for this year, Irani said consumption, financials, defence, travel and hotels are some of the sectors that would be interesting.
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