Though the equity markets have seen a run-up in the last two trading sessions, Rishi Nathany, director, Touchstone Wealth Planners, tells Puneet Wadhwa that poor participation by domestic institutions may restrain the rally. Edited excerpts:
The equity markets are finding it difficult to break out on either side. How long will this continue, given the fact that the positives from results and monsoon are already factored in?
Foreign money has been pouring into the markets, thereby, preventing any major fall. However, lack of local retail participation and continued selling by domestic institutions and mutual funds are restraining the markets. They may trade in a narrow range for some more time.
Gains were visible across most metal counters yesterday. Amidst volatile commodity prices, how do you expect this space to pan out over the next few quarters?
We are mildly positive on metals, since any global economic recovery will be backed by increased metal demand. However, prices could remain volatile over the next few quarters, with an upward bias.
Select pharma scrips have been on a roll in lacklustre broader markets. Is it a good time to bet on defensives again?
Recession or no recession, pharma is a sector that may continue to do well. In sideways markets, defensive stocks could be good bets.
However, select pharma stocks have run up substantially of late. One must look at good value propositions in this space.
What are your views on the Cairn-Vedanta deal? Is the valuation justified? Do you think ONGC has been a loser by not bidding?
The deal looks slightly expensive in the current scenario. Moreover, with a non-compete fees of Rs 50, there is not much upside left for the common investor, with the open offer coming in at Rs 355. We do not feel that ONGC has been a loser in any way.