2 IT & pharma stocks Pankaj Pandey is betting on in uncertain market
Pankaj Pandey, Head Research, ICICIdirect.com, says they have been very selective in giving recommendations largely because there is no follow-up. They have recommended an IT stock – Newgen Software – with a target price of Rs 1,465, the results were good and our sense is that the company will keep growing at 23-24 odd percent, both revenue and bottom line, over the next two-three years. Pandey says one needs to be very selective because up till now, the results have not been helping the market. They are also expecting hospitals to do well and have been recommending Narayana Hrudayalaya.
What is the tone and tonality at the retail level in the last couple of days? I mean, is leverage coming down? Is participation coming down? The two important short-term indicators are mood and momentum. The momentum is waning and the mood has become sour.
Pankaj Pandey: The mood keeps on changing depending on how things pan out. So, post Haryana Assembly election results, the mood definitely changed and now we have upcoming US elections and elections in Maharashtra. So, anxiety levels are higher. Our sense is that moods can change post the favourable outcome in some of these events.
But having said that, we do not see much of a fear in the market. Also, the fact that the corporate balance sheets are good gives us confidence that overall things have not been so edgy for a lot of investors and which is why our sense is that there is no major downtick in the overall sentiment of the market. It is just that the anxiety levels have
