Next week will be shut for China on the back of Golden Week, and it will open on 8 October. We also saw the Nifty Metal Index, it rebounded in today’s session. So, what are you seeing, what are the sectors that will witness good moves on the back of this China Golden Week and chemicals, metals, so what are your take on that?
In the short term, I expect the market to continue to move sideways and I tend to agree that if critical levels and support levels are maintained, then gradually we have this sideways correction that will only eventually lead to a breakout on the upside, that is what I hope.Specific sectors, nothing specific in mind, but banks should do pretty much well for the next two-three weeks or so and we will be entering into earnings season and those are the keys and news flow which you should watch out for because when the company declares the earnings that is when we have the maximum volatility and a lot of trading also happens around those events. So, I think we are in for a quiet week from the news flow point of view, but pretty busy towards the end of next month.
Also wanted your take on how you are seeing Indian markets play. Your key takes on the IT sector specifically because Accenture came out with its earnings, not a great set this time around though the good part is that there was not a significant fall on the Indian IT names on Friday. So, do you believe that the investor’s interest in IT is expected to be there because we have seen a bit of a rebound in the index? So, keeping the earning season in view, do you believe that the IT will perform relatively better and also how do you see the US shutdown concerns because the debt ceilings and earlier as well, we have seen a decision in the positive side being taken by the US government, so do you believe that once again on 30th September there is going to be a positive news and the kind of concerns and the fall that we have seen in the US market specifically that will come to a halt?
Yes, I am not an expert on the US market, so I cannot comment over there. But you are right, the way stock prices move in the US market does have a short-term impact on our market, there is no denying that and coming to IT sector, yes, Accenture was actually disappointing but from our perspective we are focussed more on midcap IT and those companies will continue to do very well going ahead as well because they have developed some skills and they have made a space and niche for themselves and also while they will face macroeconomic challenges, they should be able to manage their growth rates far better than large cap IT. So, within the IT space, our focus is on midcap IT. So, to that extent, we are not too perturbed by what Accenture has reported.
At the RBI MPC meet next week, the rates are likely to remain unchanged. So, how do you see the Bank Nifty trending and especially on HDFC Bank would you suggest our viewers to accumulate at this level or go for further correction?
See, it is a very difficult question to answer because we were quite bullish on HDFC Bank even at slightly higher levels, but stock has been correcting and there have been some negative surprises in terms of post merger what the figures are coming through. But I would say that I still keep my faith in HDFC Bank and maybe you could see a turnaround after the quarterly results are announced. As far as interest rates are concerned, they will be more or less in line with what they are just now. We expect no change at all and that will be very well received by the banking stocks per se.
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