Market advisor Sandip Sabharwal says BPCL NSE -0.14 % is not a disinvestment bet for him and he doesn’t see much upside left in the stock. Edited excerpts from his interview with ET Now:
As we close the month, midcap index has given almost a double-digit return and Nifty has given just 5% return. What’s in store for June?
The market did very well in May. The intriguing part is that the largecap rally was led by financials which are supposedly going to be the biggest hit due to lockdowns, impact on asset quality, etc. Many bank managements have also pointed that out. The other thing is that the Indian market actually ended up outperforming most global markets as well as emerging markets. All this is surprising because it has also happened in the context of foreign investors continuously selling almost on a regular basis. They have been buying sporadically but on a net basis they have been sellers. So it is tough to understand the extreme strength of the market in the context of what companies have been saying in their conference calls about the impact on their businesses, impact of right raw material prices, etc. On an absolute return basis, it will be tough for the benchmark indices to give any significant return from here on.
