Dhiraj Agarwal, Director Institutional Equities at Anand Rathi, feels the market, whcih has so far been moving in tandem with the global market, will break away for a while post elections. He expects market action to be stock-specific for the next one-two years and sees a secular trend in the market.

Jyotivardhan Jaipuria of DSP Merrill Lynch believes fundamentals are still weak and expects the market to give away its gains in the last 15 days soon. The Midcap Index may not outperform over three months, he said.

Agarwal and Jaipuria both believe the markets would hit new lows prior to the election this time around as fears will mount ahead elections given the huge uncertainty of the outcome. They added good election results could lead to a rally.

Market Strategy:

Agarwal advises investors to keep maximum cash now as they would be able to invest at lower levels later. Jaipuria too share a similar view and said the market would get 10-20% cheaper from here on.

Commodities View:

Agarwal said that the demand-supply situation would drive commodity prices in near-term and added the there is an inverse correlation between dollar and commodities in 2002-07

Jaipuria feels commodities have risen on the back of a weak dollar and added the demand was still a concern.

source: Moneycontrol

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