Shiv Chanani of Elara Securities talks about value unlocking in current volatile markets

Watch out for themes like travel & hospitality for a positive surprise.

Markets had witnessed a strong run in the previous week. Relaxing crude oil prices along with other commodities, state government elections, and support from domestic investors have helped the markets bounce back. However, today we saw the benchmark indices slipping by about 1%. In short, the reign of volatility is still on and in such tough times, prudent investments are important.

Market expert Shiv Chanani, Head of Research, Elara Securities India, has expressed his views on market volatility, valuations as well as on the popular themes to park the money

He said that currently, markets valuations are looking attractive when compared to several months before and definitely, some value pockets are emerging in these turbulent times.

Chanani also had a few suggestions for investors to play out this bull-run. He was very keen on the banking sector as far as the value given the growth prospect is concerned. With the worst of the credit cycle behind us, and with the NPA issue out of the picture, the banking sector looks ready to take off in the coming times. He also talked about the pharma sector that looks positive given the US business gaining traction.

Expressing his views on the upcoming Q4 earnings scenario, Chanani expects banking to put up good numbers with lower credit costs. Also, the metal and energy sectors’ earnings might come out buoyant given the rising commodity prices. He also touched upon rising volumes for the consumer discretionary sector on back of demand recovery, however, the margins might still be under pressure.

Shiv Chanani also said about sectors like hospitality, travel & tourism, movie theatres, retail and others to watch out for since these sectors can deliver positive surprising earnings.