Manish Sonthalia, Head Equities-PMS, Motilal Oswal Asset Management, believes 300-400 point fall in the Nifty from current levels would be a good level to enter the markets.
“Market has seen a one-way rally on the upside. Given the construct on the corporate earnings front for the next two years, I would look at it as a buying opportunity. Any downfall, maybe 300-400 points on the Nifty from these levels would be a good level to enter,” he said in an interview with CNBC-TV18.
In terms of IT sector, he said, “Technology is in a very sweet spot. Cloud, digital - these are the things which are happening at the ground level and India will get its share of pie. So from that point of view, IT should do well over the next few years, not just this year.”
Recently they added State Bank of India (SBI) in the portfolio. "Financials space is slightly underweight but this correction could help us find some more potential names particularly the large ones,” he said.
Sonthalia is not totally averse to public sector undertaking (PSU) stocks. “There is a great value still available in the PSU stocks. It is a pick and choose within the PSU space particularly the ones which are in monopolistic businesses. I own a few of them, the likes of Container Corporation of India (CONCOR), Hindustan Petroleum Corporation Ltd (HPCL) which we think have deep value vis-à-vis the prices at which they are trading,” said Sonthalia.
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(Edited by : Niral Sharma)