Indian Market is likely to remain volatile - Microsec

Indian market is likely to remain volatile due to global Equity, Commodity and currency market volatility. The Fed's indication of tapering QE have led to the sell offs of FII and depreciation in rupee. The companies with high FII holding are more susceptible to come under pressure owing to this rupee conundrum. The depreciation in INR been a concern for OMCs as it would hit their profitability in terms of increased underrecoveries. It would be also interesting to see how the GoI intervene to content the free falling of INR.

Further Commodities also fell led by precious metal and crude oil. We believe the Indian market may attract buying at these levels of 5550-5650 levels considering the decline in commodity prices and also attractive valuation where Nifty would trade ~11.00-11.50times FY15 earnings.

We suggest buying into L&T, TCS, INFY, SBI, LICHF, Pidilite, Dabur, IL&FS Trans, Swaraj Eng, Cummins India.

Source : Equity Bulls

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