Stock Market

Valuations expensive, time to liquidate; like Maruti: Experts

For the Indian equity market on Thursday, the bulls were back in action. The rally seen was a result of the status quo decision by the US Federal Reserve. However, the market saw a bit of volatility through the day.

Independent market expert Ambareesh Baliga is skeptical at these levels and advises liquidating a bit on any upside. According to him, valuations are expensive and there could be a decent correction to the tune of 7-10 percent. He currently is about 20-22 percent in cash and in case market goes beyond 9000 levels, he would move to 30 percent in cash, says Baliga.

However, Mitesh Thacker, says overall the market in short-term may make an attempt to get to the recent highs of 8950-9000 recent. So, the market may get into a bigger range, which could continue for next 2-3 weeks.

SP Tulsian, is of the view that the Nifty could see levels of 9000 for the September series and then for the first two weeks of October series, it could trade weak, so one should be cautious then.

Stock specific, Baliga says Maruti has been driven by liquidity and each investor needs to take a call on whether to stay with or book some profits.

However, according to R Sreesankar, Head Institutional Equities, Prabhudas Lilladher, if any one wants to stay in the passenger car segment then Maruti is the only option. In that segment they are best among others and no one has a product portfolio like them.

Sreesankar says except Jubilant Life there hasn’t been any change in their top mdicaps portfolio.  Other picks like Hexaware , Sadbhav , VRL Logistics , NIIT Technologies , Navneet Education , Spicejet etc. However, fundamentally, Jubilant still remains a good story, says he.

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