The rupee fell for the second day, and traded 43 paise lower at 56.10 against the dollar at 4 p.m.
The declines in the auto index was led by Tata Motors (-11.86 per cent), which saw tremendous selling on the back of disappointment in operating margins for the luxury Jaguar Land Rover models.
Cement was the best performing sector today with stocks like ACC, Ambuja gaining 3 per cent each.
On our show Tips for Tomorrow, Raj Majumder, CEO, Auroch Investment Managers and Ritu Arora, Director Investments (Chief Investment Officer), Canara HSBC OBC Life Insurance, discuss the market performance of the day.
Raj Majumder is getting bullish on the markets but he warns that 3-8 per cent downside cannot be ruled out from current levels. “Global uncertainty should settle down soon,” he said.
Ritu Arora expects the market to trade range-bound with a bearish bias. “Currency devaluation, high interest rates are hurting equity markets. European crisis, China slowdown remain key risks for Indian equities. Right now, we don’t see any positive triggers in the near term,” she clarified.
In Majumder’s view, currency depreciation is putting a pressure on the fiscal deficit. “We expect capital inflows to increase in the near term,” he said.
Arora feels that FII inflows will increase with a lag.
VIEW ON TATA MOTORS
“Tata motors already had a strong run up,” said Majumder.
OUTLOOK ON CAPITAL GOODS
Majumder is not bullish on Crompton Greaves. He likes L&T and BHEL. He is overweight on capital goods and all interest rate sensitives.
Arora, however, doesn’t see any momentum building in this sector. “Government reforms are required for reviving this sector,” she said.
FMCG is looking pricey is Majumder’s view. He is underweight on traditional defensives like Pharma, FMCG.
Arora, on the other hand, is positive on the consumer sector as valuations of these counters are high. She advises investors not to have large proportion of these counters in portfolios. She continues to like Pharma, IT and auto.