HDFC Securities on Tuesday said market will see a lot of turmoil ahead of the state assembly elections in Madhya Pradesh, Rajasthan, Chhattisgarh, Telanganam, Mizoram and the 2019 Lok Sabha polls.
In an interview to CNBC-TV18, Dipen Sheth, head-institutional research, said broader Indian indices are mirroring sentiments from the oil prices and the movement of the US dollar, "As a matter of fact, our country is 82-83 percent odd dependent on imported oil for our requirements and when crude oil prices increase, it sends us into some kind of tailspin."
"For seven decades after independence, we haven’t been able to figure out the way to become less dependent on oil. So, it's an Achilles heel in the economy. As soon as oil prices have reversed, the dollar has let go of a little bit of strength and we are again feeling little more constructive on India. So, we will remain vulnerable to this,” Sheth said.
Sheth said appointment of Amitabh Chaudhry as managing director and chief executive officer of Axis Bank will fare well for the country's third largest private sector lender.
Talking on IT stocks, he said it looks like an overcrowded trade, but remains an evergreen theme in India stock exchanges, "There is a challenge from automation, artificial intelligence, digital and many of these companies are responding magnificently to these challenges."