Market Valuations Attractive Now, Buy Bajaj Corp: Mahantesh Sabarad

The Government's Demonetisation Move Is Likely To Impact Earnings Of Indian Corporates In Negative Way, Says Mahantesh Sabarad, Head Of Retail Research At Sbicap Securities.

Mr Sabarad Adds That If Goods And Services Tax (Gst) Is Rolled Out On The Deadline Date - That Is On April 1, 2017 - There Will Be Another Set Of Temporary Disruption In The Indian Economy, Though For The Short Term.

"The Entire Country Will Start Moving To The Gst Phenomenon And Between Demonetisation And Gst, There Will Be Slower Earnings Growth As We Go Forward," He Said.  

Mr Sabarad However Says That The Earnings Recovery Could Be Sharp If The Government Takes Quick Measures To Incentivise And Propel Economic Growth.

Meanwhile, Mr Sabard Says That Market Valuations Have Turned Attractive After The Recent Correction. 

"There Is Value In The Market Right Now As The Correction Has Been Too Steep Post Demonetisation And Trump Victory," He Said. 

"The General Trend Suggests That The Foreign Institutional Investors Have Been Selling But At The Same Time Domestic Institutional Investors Have Been Buying Which Suggests That Dii Buying Could Take Markets Higher," Adds Mr Sabard.

Here Are Some Of His Top Stock Picks In The Current Market Scenario:

Bajaj Corp

Kalyani Steels

Canfin Homes

Tourism Finance Corporation

Federal Bank

Waterbase Ltd