Dolat Capital sees ranged markets for next few months, likes Indiamart

This perspective has been consistent since May and June when Dolat Capital Market communicated in its note that the market rally is predominantly centered on specific stocks, and going forward, returns will be driven by the performance of individual stocks rather than being driven by the overall market index.

There is no apparent reason to deviate from this narrative, and it is highly likely that this narrative will persist for the next two quarters, he said.

He holds a somewhat cautious view on the Information Technology (IT) sector, leaning towards a negative stance. The recent upswing in IT stock prices was primarily a short-term tactical move, and he anticipates that moving forward, there won't be many catalysts driving positive performance in this sector.

“So the stocks would probably meander around these levels for a quarter or two,” he said.

He has initiated coverage on IndiaMart.

“That is one name that we have initiated the coverage on in the recent past,” he said.

Shares of Indiamart were flat today and have lost about 8% over the past month.