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    Market does not have trigger to break out of range: Sudip Bandyopadhyay


    Hardly anything is happening in midcap and smallcap universe, says the Inditrade chairman.


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    Unless, there is major news flow affecting the market direction, we will continue drifting the way we are drifting for some time, Sudip Bandyopadhyay, Chairman, Inditrade Capital, tells ET Now.

    Edited excerpts:

    Even though Nifty had touched 11,000, one is almost reminded of 2018. The divergence between the broader end of the markets as well as the benchmark indexes and just four-five names is really holding the Nifty up.

    Absolutely right. In fact, what is happening in the market is pretty much the movement in the largecaps and that also based on news flows -- be it corporate results or some of the global or domestic news flows.

    If you look at the midcap and smallcap universe, hardly anything is happening. Of course, risk aversion is one reason why people are probably not participating in the midcap and smallcap universe -- both global as well as domestic investors. Also, Sebi changing the risk weightage on which shares mutual funds can participate in and which they cannot also has contributed significantly to this kind of lacklustre trading in small and midcaps.

    The combination of these two factors along with global trade war uncertainties and the forthcoming general elections have made investors a little cautious. That is getting played out in the market. We do not believe that the market has the trigger either on the positive or negative side to break out of the range in which it has been hovering for quite some time.

    Unless, there is major news flow coming and affecting the market direction, we will continue drifting the way we are drifting for some time.

    What is your view on ?

    We have been cautious on Tata Motors for some time. We have not seen the last of the problems of JLR. There is a significant slowdown in demand for luxury vehicles in China and that has significantly affected the JLR numbers but there is a fundamental issue with JLR itself. Global competitors of JLR have invested heavily in new technologies -- be it self-driving vehicles or electric cars and things like that. That supposedly is the technology of the future.

    Unfortunately, JLR has not really made that kind of investment in these new technologies. JLR probably is at a significant disadvantage vis-à-vis other luxury car makers as well. Yes they have done strategic manufacturing location selection, whether it is China or Eastern Europe, but the demand slowdown has hit them badly,

    Also, we believe they are not prepared for the future. Considering these facts, will continue to bog down the consolidated Tata Motors for quite some. We have to be extremely careful. It is one of the flagship companies of the Tata Group and at Rs 150, it may look attractive but I will still advice caution at this stage.

    Given the kind of move that we saw in Tech M post its numbers, does that change the pecking order within IT? Would you say TCS, Infy are still the go to names?

    TCS, Infy are still the go-to names if I am looking at the largecap IT pack. Both these companies have restructured their businesses and moved to the digital business significantly, so that they are future ready. The way they have captured the new accounts over the last few quarters is quite commendable.

    Some of the smaller companies have demonstrated credible results in the current quarter. But I will still go to and Nifty if I have to take exposure in largecap IT.

    On the other hand, if I wanted to be a little aggressive, I probably will get into a company like . There is an impending corporate action and that should give aggressive investors good return in the medium to short term.

    One can also look at both the L&T Tech companies. I will also look at the other company where there is a corporate action brewing -- both the NIIT companies. These can be looked at by an aggressive investor.

    If I am little stable long-term investor, I can also look at Persistent Technologies. They are doing quite a commendable job and there are a whole lot of interesting midcap IT names where exposure can be taken at current level for investor which has slightly long-term horizon in mind.
    (What's moving Sensex and Nifty Track latest market news, stock tips and expert advice on ETMarkets. Also, is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds.)

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