Stock Market: Market expert Mehboon Irani talking about the further movement of the market. Said to have exited its investment in Eternal. A lot of momentum was seen in the stock. I am not in favor of investing in Eternal at the current price. However, investors who want to buy in it should buy in the fall and book profits. I would not advise investors to invest much in new age companies but Paytm’s stock looks a little better in this. If we look at the fundamentals and valuation, there are many shares in new age companies whose valuation and fundamentals are not understood.
He further said that if you look at the average in the last 6 months, the prices of 7 out of 10 IPOs have been listed below their offer price. Which definitely creates concern for the market.
Lack of positive triggers in IT sector
Talking about IT space, he said that my view on IT has remained negative for the last 6-7 months. Because there is a lack of positive triggers in this sector. However, valuation comfort seems to be forming in the sector. There seems to be less possibility of decline in IT companies which are sitting on good valuations. The business of most IT companies depends on America. If there is any problem in America, IT will be in trouble.
Although he believes that buying can be done in the sector with a long-term perspective, but in the short term so far he does not see any positive triggers for the sector.
In which sectors further growth is expected?
Power finance, banking and finance, construction space, auto space are showing comfort in all these sectors. Shares of L&T, Mahindra & Mahindra are very much liked in Frontline. Whereas in midcap, quarterly results of Chennai Petro, Cosmo First, Kirloskar Oil Engines, Timex, Parag Mills are also quite good. He further said that this share is included in my portfolio. If there is a decline from the current level then it will be a good buying opportunity.
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