Fed comments at Jackson Hole won’t impact Indian markets: Avinash Gorakshakar

Indian markets shrugged off taper talks and worries ahead of the Jackson Hole Symposium on Friday. The S&P BSE Sensex index shut shop 175 points higher at 56,124 and the Nifty50 index rose 68 points to end at 17,705. This was a record closing high for the index. Nifty50 scaled another all-time high on Friday, as it hit 16,722 in intraday trade while Sensex had hit a fresh record high level of 56,198. Mid and smallcaps gaining almost a percent and outperformed the benchmarks. Avinash Gorashakar of ProfitMart Securities spoke to Money9 on what should be investors strategy going forward.

“Markets will continue to remain volatile in the coming week, therefore investors need to have a very stock selective approach even if the markets continue to rise higher. The impact of global liquidity in emerging markets lie India will be key going forward for our markets since have been seeing a lot of FII selling.”, he said.

In the last week, FIIs have sold equities worth Rs 6,833 crore, while DIIs bought equities worth Rs 6,382 crore. So far in August, FIIs have sold equities worth Rs 7,652 crore.

He believes the US economy is in better shape so quantitative easing may not be required. He said any reversal of liquidity too will not have a kneejerk impact on markets, it will be a gradual process if at all over the next 3-6 months.

“Among sectors, IT has reached an expensive point while pharma, metals, and agrochemicals should see positive momentum ahead”, he added.

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