The three spaces that would lead the current bull market would be PSU and corporate banks, pharma and generic pharma, and infrastructure, believes N Jayakumar of Prime Securities.
According to him, issues with regards to trade war, elections, earnings, etc. are still impending and one should expect more political headwinds over the next few days. “Given all this, one could see volatility but we will make new highs,” he said, in an interview with CNBC-TV18.
“The FIIs who were sellers have turned buyers. The power of liquidity has the potential of overcoming the ground realities with regards to growth, etc. and could take the market to new highs,” he added.
However, he said that the rupee would be pressured to move to 67-68 to the dollar range.
Talking about his expectations from the upcoming monetary policy, he said if there is a 25 basis points cut, then there will be enough in the commentary indicating further rate cuts and if it is 50 basis points rate cut, it wouldn’t be a surprise.