Market analyst Ambareesh Baliga told NDTV that there is momentum in markets, but fundamentals are lacking in the current rally. Earnings have been mixed so far and they are likely to bounce back only by December, he said. (Watch)
It is difficult to say how many bills will be passed in the monsoon session of Parliament, which starts on July 21, Mr Baliga added. As far as the domestic economy is concerned, things are still moving slowly even as export figures have been quite pathetic, Mr Baliga said.
In terms of global factors, while the Greece crisis has been sorted out, China is still a problem and could lead to a risk-off strategy by foreign investor, he said. The Fed rate hike is also among the negatives on the horizon, Mr Baliga said.
Small cap and midcap stocks have moved much more than large cap stocks, which is a sign of bubble formation, he added.Stock TalkTata Motors: The current weakness could be a decent opportunity to buy Tata Motors for a long term, but I would possibly like to stay out for a while.
Tyre stocks: They have seen a decent bounce back in recent past, but there could be huge competition from Chinese manufacturers in future as rubber prices are at all-time low.
Cement stocks: Investors should buy cement companies. Once infrastructure projects pick up, cement companies will start doing well and their margins will improve along with capacity utilisation.
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