The domestic market will continue to move up as long as international markets remain stable. The recent liquidity rush will continue into emerging markets, says Ajay Srivastava, CEO of Dimensions Consulting. Investors are now hoping for an economic recovery. If results are not visible in the next one or two quarters, skepticism will return, he says, adding that a 5-10 percent increase on earnings per share (EPS) side is legitimate. “The current rally is simmering to a point where non-performing stocks are not getting penalised,” he says. It is time for investors to look at stocks that are performing well. It is advisable to now move from smallcaps to higher midcaps with valuations of Rs 200 crore and above, he says. Srivastava is bullish on oil marketing companies and the cement sector over a three year perspective. The cycle for pharmaceutical space is also changing and investors can start investing again. The value lag is the most in public sector banks, but they can give good returns in near-term, Srivastava says. The Good & Services Tax (GST) Bill is not relevant for the market now. If it passes in this session, some bump-up will be seen, but even if doesn’t impact it will not be great, he says.
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