Buy IT stocks on every dip; avoid NBFCs for now: Nischal Maheshwari
Nischal Maheshwari, Market Expert, says BFSI accounts for more than 50% of revenues for most of the IT companies. If BFSI starts turning around, it is really good for the IT sector. Also, interest rates cuts have started happening in the US and that is where the discretionary spend should also start going up. So, hold on to your IT stocks. At every dip, IT is a buy.
On the other hand, RBI has given a clear hint to NBFCs to go slow on the growth part. It is best to avoid all the NBFCs for the moment.
What are you making of this extremely volatile market and complete disconnect from what the Western markets are doing – both Europe as well as the US?
Nischal Maheshwari: Some amount of profit-taking is happening in India. Yes, it is a bit of a disconnect. If you compare this, it has been a very solid market as far as the US is concerned and even in Southeast Asia. But here we are seeing some amount of profit-taking, some amount of disappointment as far as earnings are concerned in the current quarter.
Mostly if you really look at it, all the consumption companies have been reporting slightly subdued numbers. Obviously, Bajaj Auto results were really bad. That is taking a bit of pressure onto the market.
What is the view when it comes to Manappuram Finance and some of these gold financiers and the issues that they are going through right now? Is this dip a buying opportunity or just stay away?
Nischal Maheshwari: For the moment, it is a good time to stay away because the RBI is telling them to go slow. Earlier it has
