Mkt rally to take breather; don’t enter now: Shankar Sharma
Talking about the current pullback rally seen in the capital markets, Shankar Sharma of First Global said it fits the bill of a bear market rally. “The same underperforming markets — India, US, Italy, Japan — are leading the current pullback rally. Even in the US, beaten-down sectors like banks, insurance and related sectors are rallying and defensive plays are laggards. So this is a perfect script of a bear market rally. I wouldn’t be so brave to call it the start of a bull market,” Sharma said.
Sharma added that the market is expected to take a breather and said investors should wait for a while before entering. “Let us see how the next few days play out because I don’t think the market is going to double in a matter of three weeks times,” he said. “Getting in now would be becoming a complete novice in this business that you were the last guy in and then they sold you all their junk. That is the way usually these things end.”