Market Voice: Avinash Gorakshakar, Anagram Stock Broking

'Infra stocks to be in focus soon'

Avinash Gorakshakar,head (research), Anagram Stock Broking, tells Priya Kansara Pandya that the next leg of rally in the markets will be driven by capex-driven sectors. Edited excerpts:

How high can the Indian markets go from the current levels?
The markets will continue to touch higher levels as long as strong liquidity continues. How much higher... is anybody’s guess, but we see no major reason for the markets to fall. Considering the current momentum, it seems inflows will cross the $22-billion mark in the next six-eight months. Thus, in the near term, the Nifty can easily achieve 5,700-5,800. However, I expect some consolidation and profit-taking. In a worst case scenario of correction, 5,300 will be a good support level.

Generally, many stocks trade at new highs before a correction, which is happening at present. What are your thoughts on this?
When liquidity is strong, money chases even the mid- and small-cap companies where the float available is less. So, when the demand for the stock is high, as everybody wants to be a part of the rally, prices touch higher levels. Trading pattern becomes stronger than fundamentals. As an investor, we become cautious when the stock touches a new high.

Will the next leg of rally be taken over by the capex-driven sectors after consumer sectors like auto, fast moving consumer goods (FMCG) and banking have had their run and are now consolidating?
Sectors like auto, FMCG and banking were buzzing, as they provided revenue visibility and reported strong growth even during the lean season (April-September). On the other hand, infrastructure- and capex-driven sectors witnessed a muted growth during the same period. I expect them to be in the limelight soon, as the second half is generally better for these sectors on account of pick-up in businesses.