Speaking on risks from crude price rise, Sanjay Mookim said that it could remain rangebound around the levels of USD 60 per barrel.
As benchmark indices have witnessed a correction of around 3 percent so far this year, the debate has shifted over whether the overvaluation in the market has mellowed. Is there more downside and can this level be called 'a comfortable one'?
“It (the market) is certainly in a better zone than around mid-January levels, but I don’t think valuations are at a place where it is comfortable,” Sanjay Mookim, Director-India Equity Strategy at Bank of America Merrill Lynch told CNBC-TV18 in an interview.
In fact, from a broader markets perspective, the PEs could see an additional 10 percent fall. Having said that, the flows into the market is encouraging, he said, adding that he hopes that the trend does not reverse.
However, it may not be a respite from the market’s fall further.
Speaking on risks from crude price rise, Mookim said that it could remain rangebound around the levels of USD 60 per barrel.
Among sectors, he is overweight on financials as growth will continue to work. The clear favourites are private sector banks, he said, adding that select PSU banks are also a buy call. On the IT space, he remains selective too as the overall sector is still an underweight call.
Mookim is bullish on the housing segment as several blocks and issues are now behind. There is price and time correction and realty demand is ‘infinite’, he said. “Government policies are working, expenditure is taking place and hence the cumulative momentum could turn positive,” he added.