Editors Take: Anil Singhvi sees more uncertainty in cash market stocks, recommends to focus on index and selected large-caps

In a special edition of Editor’s Take, Zee Business Managing Editor Anil Singhvi sees uncertainty in cash markets to continue, especially in broader markets. He suggested to sell whenever a bounce in the stock is visible, however, he recommended to Buy in the index and some large-cap stocks. 

The managing editor stated that the index is likely to show recovery either today or in two-three days. He was reluctant to have the same confidence in cash market stocks. 

In a downward rally, the index has not breached yet any important level and this will spread to cash market stocks after a certain limit, Singhvi added.  

Moreover, cash market stocks that have leveraging and funding issues should be traded cautiously, as stocks specific accidents will still happen, Singhvi said, suggesting investors don’t rush to buy cash markets stocks and should go for either index or some large caps from sectors – Auto, FMCG, Bank.  

He added, “There is still time to take cash market stocks and should sell whenever possible as a bounce in these stocks is visible.” The benchmark indices on Monday snapped a 6-day losing streak, on the contrary, broader markets witnessed a massive fall over a 1-year high. 

He explained, that until crude oil doesn’t soften this volatility will continue. If crude trades around $120-125 per barrel then recission is likely; at around $110-115 per barrel is Neutral and below or around $100 per barrel is positive and if it comes at around $70-80 per barrel market would see a rally. 

According to Singhvi, every nation is in process of controlling inflation – which is divided into imported and non-imported. The second one is uncontrollable by any country and for India its huge, however, non-imported inflation such as food and vegetables can be controlled through a rate hikes.