Markets fairly valued right now: Maheshwari

Nischal Maheshwari, Head Research, Edelweiss Securities talks to Suniana Vasudev on the road ahead for the markets, the likely triggers and sector specific action.

Tell us about your outlook for the markets. What do you see as a fair value for the Sensex?

We think the Sensex is fairly valued right now. In the short-term, we expect markets to be rangebound with the Nifty trading between 4800 and 5200 levels. In the medium-to-long term, however, we are positive on the prospects and expect that the Nifty to cross 5500 levels in the next six months to a year.

What are the push pull factors affecting the markets currently? Where do you see the next trigger?

The main pressure is from too much paper issuance. The fourth quarter results and monsoons should provide the next triggers

What is your outlook on the FII inflows? Where do you envisage worries regarding any global shocks?

I am not very positive on the outlook for FII inflows and don’t see any fresh money coming in from any of the funds. I was surprised to see that FII inflows were an aggregate of over $2 billion as of 10 March. The worries on global shocks come mainly from Europe more than the impact of hardening policy in China.

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