Use weakness in metal to add 2 stocks; go contra in chemicals: Sanjiv Bhasin

economictimes.indiatimes.com:

Sanjiv Bhasin, Director, IIFL Securities, says “I am amazed at the strength in midcaps. Yesterday, the midcap index was up. So, we are not complaining. All we are saying is that there will be a sectoral churn. Now it is time for banks to come back and if you are looking for an opportunity, then use the next few days’ weakness in metals as a proxy to the dollar to buy.”


It is time to definitely tread with caution. I want you to drill the point home that there is no harm in the market consolidating at this juncture, it is only but healthy.
Sanjiv Bhasin: Yes, the market consolidation is there and we had run up maybe irrationally and that has seen a little bit of a climax. We have corrected about 400-500 points on the Nifty, which is healthy for the market. I would expect this to end today. There is an up move of about 200-300 points which can come today or tomorrow.

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Though there were the Fed minutes and other data, all markets globally had run up maybe too excessively and there was some bit of profit booking. In the US particularly, I think the Apple downgrade has hurt sentiment on IT stocks. However, two things have happened, the unfortunate, devastating earthquake in Japan. We will now see a lot of long-term money buy this opportunity. In fact, I would say that this is the time to be upweight on where you are getting these types of unforeseen selloffs.
I think Japan will be a key market which will see a lot of inflows because of this one-off event and I would expect