We're still in a phase of sell the rally rather than buy dips: Chhaochharia

Don't take too much of sector bets as we will continue to see a lot of dispersion within sectors, says Gautam Chhaochharia, head of India Research, UBS

The markets have rallied from recent lows, but Gautam Chhaochharia, head of India Research, UBS, tells Vishal Chhabria that macros have still not turned favourable, earnings estimates will see more cuts and retail flows have decelerated sharply. He says elections will be the biggest driver for markets. Edited excerpts:

What do you make of the latest rally or rebound in markets, after a steep fall? Is it is a Dead Cat bounce or you see more legs to the rally?
 

We see it as a Dead Cat bounce. We’re still in a phase of ‘sell the rally’ rather than ‘buy