The stock market is braced to enter a new price zone after the general elections, but for the interim period, they are expected to remain range-bound, according to analysts. Under the circumstances, large-cap defensive counters are in favour, while operators wait for clarity in the political scene. | |
| Nandan Chakraborty, head of research at Enam Securities, told Business Standard: "Most of the existing information seems to have been already priced in, and the players are now waiting for the new drivers. These could be big-ticket in nature and events that convey the proof of intent of the government such as strategic sale of sizeable public sector undertakings, steps towards rupee convertibility etc." |
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| But Chakraborty added that these triggers can be provided only by a stable, strong administration. Jitendra Panda, vice president, Motilal Oswal Securities, says, "Investors are looking for 'safer' stocks and large-cap counters have the depth and these companies have the growth potential to match." |
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| Chakraborty feels that the markets may remain range-bound in the near term and favour defensive large caps. |
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| "If confidence builds up of a strong government coming to power, we expect mid-caps, and interest-rate policy sensitive shares to perform the best," he says. |
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| Vijay Saraf, chief operating officer, Centrum Securities, says index stocks look like a safe bet till a clear trend emerges. He added that the market may look at Sensex levels between 5600 and 6200 in the interim period. |
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| Rajesh Kamdar, dealer at a local brokerage, says the markets corrected recently due to supply fears, electoral uncertainty and year-end liquidity squeeze. |
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| The refrain on the street is that the long-term uptrend for Indian stocks remains intact, as is evident in the confidence that global funds have placed in the local markets. |
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| Foreign institutional investors (FIIs) have brought in a total of Rs 18,099.50 crore into India in 2004 so far. |
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