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    Market will continue to drift till the upcoming elections, says Nepean Capital

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    Market will continue to drift till the upcoming elections, says Nepean Capital

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    The market will continue to drift till the upcoming elections, said Gautam Trivedi, co-founder & managing partner, Nepean Capital.

    The market will continue to drift till the upcoming elections as it is a stock pickers market, said Gautam Trivedi, co-founder & managing partner, Nepean Capital.
    It has been  a stock pickers market from the start of the year and will continue to remain till elections, said Trivedi.
    Although systematic investment plan (SIP) continue to remain strong, issues such as exit of foreign institutional investors (FII) from the market and lack of  incremental money coming in from domestic investors are plaguing the market, he said.
    Talking about bank stocks, he said there is still pain left for Public Sector Banks.
    The Insolvency and Bankruptcy Code (IBC) has got off to a good start, but there are only 40 judges to hear more than 5,000 cases, which is not enough he said.
    Lot of investors are still staying away from ICICI Bank and will continue to do so till the Chanda Kochhar issue is fully resolved, he said, adding that it could be positive for the bank if she leave.
    On Tata Motors, he said one needs to give chairman N Chandrasekharan a chance to resuscitate the company. However, domestic side both the passenger vehicles and trucks are gaining traction and that is a good news. Moreover, restructuring is underway and they are selling the non-core assets.
    Midcaps is again a space which is very stock specific, said Trivedi, adding that some stocks are starting to look attractive from an entry point. “There are some great value picks in the midcap space,” he said.
    He said the house is also tempted to look at pharma companies that have businesses overseas and have headquarters in India, but there is still time for that.
    Talking about Mahindra and Mahindra, he said the company has a good corporate governance, strong fundamentals, but don’t know why the stock does not perform. It has doubled in five years, but has done nothing in the last four years.
    He said the auto space is one space that looks to be in its own orbit and could be the beneficiary of the seventh pay commission.
    Talking about Bajaj Finance, he said every industry has a leader and one who owns the stock should continue to do so. “I would not sell it even at current levels,” he said.
    He is also upbeat on company such as Astral PolyTechnik from the adhesive space.
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