Ajay Bodke, Prabhudas Lilladher, discusses with Prashant Nair and Ekta Batra his analysis on the fundamental side of the market as well as specific stocks and sectors.
Bodke said that macros are deteriorating because of the surging global crude oil prices and he is expecting the Reserve Bank of India (RBI) to act soon and increase interest rates.
He said, "The improvement in micros at the take off in corporate earnings is a tad slower than what the market factored in and that is why there is a feeling that the correction, that one is seeing, should continue for some time.”
Bodke is expecting market to test levels of 10,300 to 10,400 in the short term.
He is of the view that there are pockets in midcaps, where there is emergence of value and one will have to start sort of focusing on some of those sectors and companies within those sectors.
From educational sector, a company like S Chand and Company has tremendous value in that pocket.
Capital First expect an earnings growth of 35% in FY 2018 and 60% growth in FY 2019. Expect a target price of around Rs 700-750 in the medium term.
He is also positive on the diagnostic space. From a medium term view Rs 750-760 is possible on the Thyrocare.