Markets to consolidate says Emkay Global; bullish on IT, speciality chemicals

Krishna Kumar Karwa, MD of Emkay Global, on Friday, said that the equity market is not in a position to absorb negative news. Karwa believes that the market is in a mood to consolidate now.

In an interview with CNBC-TV18, he said: “There will be some short-term variations that we will also see whenever global markets are weak and some of the stocks in our markets are also heavy in terms of the overall position and the market is not in a position to absorb any bit of negative news. The market has run-up a lot and seems to be in a mood to consolidate.”

On sectors, Karwa said, “I am positive on IT companies and it’s more driven by the business opportunities that many of these companies are seeing. Therefore, from a medium-term perspective, I continue to believe that largecap IT should deliver better returns for investor portfolios.”