Arvind Sanger, managing partner, Geosphere Capital Management is highly bullish on the India story after the current account deficit (CAD) saw a smart decline in Q3. The CAD or the difference between the country’s exports and imports, has come down to USD 4.2 billion or 0.9 percent of the gross domestic product and has been aiding the positive market sentiment. India has been getting robust flows from foreign institutional investors (FIIs) in the past 15 sessions. Despite FIIs offloading funds from emerging markets (EMs), Indian has clearly bucked this trend explains Sanger. He further adds that he has a target of low to mid-7000 on the Nifty for this year. Sanger further says that the market is likely to be volatile from a one month perspective driven by all the global events and local news flows around the general elections. However, the market is heading higher as it has a lot of tailwinds in the form of CAD and expectation of positivity from the inflation numbers, he adds. On what stocks to invest in, Sanger says the demand stories, infrastructure plays are likely to do well, but one must be cautious when dealing with the infra space. “Their debt to EBITDA ratios are too high, so be careful when choosing stocks in this space,” he warns. Sanger is bullish on the banking sector and says State Bank of India (SBI) is a safe play among public sector banks.

Read more at: http://www.moneycontrol.com/news/market-outlook/nifty-target-at-7200-7500-bullishbanks-geosphere_1051401.html?utm_source=ref_article

The CAD or the difference between the country’s exports and imports, has come down to USD 4.2 billion or 0.9 percent of the gross domestic product and has been aiding the positive market sentiment. India has been getting robust flows from foreign institutional investors (FIIs) in the past 15 sessions. Despite FIIs offloading funds from emerging markets (EMs), Indian has clearly bucked this trend explains Sanger. He further adds that he has a target of low to mid-7000 on the Nifty for this year. Sanger further says that the market is likely to be volatile from a one month perspective driven by all the global events and local news flows around the general elections. However, the market is heading higher as it has a lot of tailwinds in the form of CAD and expectation of positivity from the inflation numbers, he adds. On what stocks to invest in, Sanger says the demand stories, infrastructure plays are likely to do well, but one must be cautious when dealing with the infra space. “Their debt to EBITDA ratios are too high, so be careful when choosing stocks in this space,” he warns. Sanger is bullish on the banking sector and says State Bank of India (SBI) is a safe play among public sector banks.

Read more at: http://www.moneycontrol.com/news/market-outlook/nifty-target-at-7200-7500-bullishbanks-geosphere_1051401.html?utm_source=ref_article