UR Bhat, director of Dalton Capital Advisors, spoke to CNBC-TV18 about the fundamentals of the market and specific stocks.
“The outcome of the election is going to be very important. Saturday we are going to have the election dates announced, so after that, all these alliances are being formed. So once alliances are firmed up, I think the first opinion poll after that will probably give direction to the market,” Bhat said.
On the midcaps and small caps space, Bhat said, “The biggest disruptor, that is GST, has sort of more or less stabilized now. Therefore, the small and midcap which had borne the brunt of that, that I think they have more or less managed to negotiate that. Therefore, I think things should improve from here.”
Speaking about the portfolio changes, Bhat said, “For the last few months at least the only game in town was private sector banks. It was non-NBFC, non-PSU bank private sector entities and then probably some amount of consumer-facing companies. Assuming that there is going to be some revival in industrials and engineering construction companies, I think these look the games that one can play.”