Market Expert Mehraboon Irani says that the Indian market could see a deeper cut if inflation goes out of control and the corona spreads to the developed market. He says that these are the two important factors to watch out for going ahead.

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Mehraboon Irani says, “Inflation is like cancer to equity and it's rising globally, which is a concern. If the second wave of Covid-19 spreads to developed markets then the correction would be much deeper.”

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Stating that Indian markets are mostly cushioned by the US stocks, the intermittent bottom is inevitable and it shall be visible may be in the next 15 days or 1-2 months. However, post that a huge bull market would surface in next coming years, says Irani.

Mehraboon Irani says that he is expecting a correction, before consolidating and then moving up further. He said no one really expected there would be an additional slowdown and would need increased funding across all players. Perhaps this is the reason, the market is a little upset and overreacted.

At this juncture, it becomes very much important to know how fast this second wave of covid would cool off and the effectiveness of vaccines comes into play; we may see uncertainty in the market with the rising cases, highlights Irani.

Mehraboon Irani said that the Bull market is certainly ahead of us, from here. He expects the markets can see a level of around 13500-13800 on Nifty. The economic cycle was about to kick start, but the second wave has struck.
Despite good numbers in the next two quarters, the markets won’t grow, markets will remain under pressure. RBI is doing a fantastic job in managing inflation and bond yields, says Irani.

Mehraboon Irani says, the pharma sector is good but sectors such as IT and FMCG improved too. Chemical specialty space could also be the better option. Moreover, the metal stocks have not topped out and have huge scope going forward. 

(Authored by Vaibhav Bansode)