'What I don't like which market loves is ...': Vinit Bolingker on Indian stock market, US election

Vinit Bolinjkar, Head of Research at Ventura Securities, believes every pocket in the economy is growing. "What I don't like what the market loves today is the IT (Information Technology) segment. I've been a persistent bear on these IT stocks. If the situation in the US (election) plays out the way it does then I think these stocks can come in for a hammering. I don't like IT plays because for the last few years, they have been reporting single-digit growth," the market expert told Business Today TV on Monday.

"They (IT) stocks are the most researched stock and most talked about but they (companies) are not adding value to the business. From a defensive perspective, mutual funds have been piling into them and keeping their valuations where they are. I think there is a severe correction going to happen in these stocks and my advice is to despite the outperformance, stay away from here," Bolinjkar also said. The US presidential election will be held on Tuesday (November 5). Opinion polls too close to calling a winner between Democratic candidate Kamala Harris and Republican Donald Trump. The outcome would decide the fate of many export-oriented domestic sectors, including the IT sector.

In response to a query on the automobile pack, he said, "I think the fizz has run out of the entire auto play. The auto pack has seen a correction. Within the space, I tend to like Hero MotoCorp Ltd because it has seen a very severe correction and the (sale) numbers were okay. A better price point to buy would be somewhere between Rs 4,700 and Rs 4,800."

Meanwhile, Indian equity benchmarks took a sharp beating today amid weakness across all sectors. Broader markets (mid- and small-cap shares) are also down. Fear index, India VIX, jumped 7.75 per cent to 17.14.

All 16 sector gauges -- compiled by the NSE -- were trading in the red. Sub-indexes Nifty Oil & Gas, Nifty Metal, Nifty Auto and Nifty Realty were underperforming the NSE platform by falling as much as 3.15 per cent, 2.21 per cent, 1.70 per cent and 2.89 per cent, respectively.