Unsure of big correction, but market may not rise much either: Ambit Capital’s Dhiraj Agarwal

Dhiraj Agarwal, co-head of equities at Ambit Capital, on Thursday said he is not sure of a big correction, but the market has turned very volatile.

Concerns over rising interest rates globally have so far triggered two selloffs in the Sensex and Nifty in the last six weeks.

In an interview to CNBC-TV18, Agarwal said, "Big correction, I am not too sure at this point of time but the market is turning a lot more volatile than what it was till November 2019. However, in the last 2-3 months we have seen largecaps, a few of them, going into the red and that’s causing volatility which will continue.”

Agarwal also does not see the markets going much higher from here and Nifty could consolidate as most heavyweights are fully priced.

"I do not think the market will go substantially higher from here. The market will go somewhat similar now for the next year or two. At the index level, the gains will not be high and that is primarily because of the fact that many of the index heavyweights are fully priced or expensive or a sell. And the sectors and the stocks which will continue to do better are not such high weights in the index which are seeing cyclical or structural impact and the jury is out on that. So, the rotation which started in March-April will gather steam with many of the mega caps not performing or may give negative returns over the next year-and-a-half," he said.

Agarwal continues to remain positive on steel stocks and does not expect prices to move up from current levels.

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