Markets Can See Profit Booking, Consolidation On Elevated Levels, Says Inditrade Capital
The incremental flows into IPOs will get absorbed by the market over time and contribute to the rally, says Sudip Bandyopadhyay.
The markets have soared on the back of foreign institutional flows and profit booking, and consolidation at such elevated levels can be on the radar, according to Inditrade Capital Ltd.'s Chairperson Sudip Bandyopadhyay.
"It would be good for the health of the market," he told NDTV Profit on Tuesday. "In the medium to long-term, we will continue the upward trajectory."
The possible triggers for any downside risk would be policy changes by the Reserve Bank of India or the U.S. Federal Reserve, he said.
Bandyopadhyay said the incremental flows into the initial public offerings will get absorbed by the market over time and contribute to the rally. "We should welcome more companies into the listing place. That brings discipline in those companies and help absorb incremental flows," he said.
According to Bandyopadhyay, shipping companies would benefit in the aftermath of the crisis in the Red Sea as freight rates would go up.
In terms of the metals sector, a tapering of U.S. rates and a possible stimulus push by China would contribute to positives, he said, highlighting that companies like Vedanta Ltd. could be an attractive buy.
Gaurav Bissa, vice president of Incred Equities, has a 'buy' on Tata Steel Ltd., with a target price of Rs 145 and a stop loss of Rs 130. He also placed a target of Rs 265 for Bandhan Bank Ltd., with a stop loss of Rs 240.
The views and opinions expressed by the investment advisers on NDTV Profit are of their own and not of NDTV Profit. NDTV Profit advises users to consult with their own financial or investment adviser before taking any investment decision.
