The markets ended a lackluster session today and is likely to remain rangebound with negative bias unless the government initiates some reforms.But amid all this gloom and doom, Angel Broking is positive on the markets and expects a strong bull run in the next six months.
In an interview with CNBC-TV18, Rajen Shah of Angel Broking said the Indian market is more attractive compared to US and Europe, where economic problems have magnified to a large extent. Therefore, he believes money will flow into the market, which will provide a strong boost to Indian equities.
Overseas investors have already poured in more than Rs 10,000 crore into the Indian equity markets in July— the highest monthly inflows in five months— sidelining concerns over weak monsoon, slowing economic growth and a high interest rate regime.
Moreover, Prime Minister Manmohan Singh today intervened to remove a ban on transfer of government land for infrastructure projects that are developed in partnership with the private sector. This is likely to benefit power and infrastructure companies.
However, they don’t expect the government to carry out crucial reforms liked FDI in retail, aviation or cut down fuel subsidies.
So while Shah is cautious on the market in the short-term because of the fundamentals prevailing both in the domestic market because of inaction on the part of government, he is extremely bullish over the next 24-36 months.