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Tuesday, July 14, 2009

Right Time To Buy Stocks Now: ICICI Sec

Anup Bagchi, ED, ICICI Securities, said

The market was currently a buyers market. "There is some sort of budget overhang where the expectations were certainly running ahead of what could have been technically delivered. I think this is a good time to buy the Indian market irrespective of what the budget was and how the market expected to fall.”

I think two things are playing out in the Indian market. I think we should look at it in context of the global market. No global market anywhere in the last 2-3 weeks have really sustained a rally, if at all it is struggling to be at the same place, to that extent the global cues are not as positive as they were, let us say 4 weeks back. Coming back to the Indian context I think there is some sort of a budget overhang where the expectation were certainly running ahead of what could have been technically delivered I would say. The second one is monsoon issue has come in, where if the monsoons are not as good then there could be a slight selling off that can happen and which is what we are seeing in the Indian market.

On the positive side, the Index of Industrial Production (IIP) data is positive. The cues that we are picking up from the corporates is that the worst is certainly behind us and that pick up is happening. So, we will have to look at these two things. I think these are good buying opportunities and at an attractive price. People were running after buying and they thought that they are going to miss the market when it was 4300-4600. I think the time has come to buy. It is a good buying market is what we feel.





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