Gaurav Dua, SVP, Head of Capital Market Strategy at Sharekhan by BNP Paribas, on Tuesday said market participants will be closely monitoring the outcome of US Federal Reserve for cues. The US central bank may cut rates at its September 17-18 policy-setting meeting.
When asked to share a view on Bajaj Housing Finance Ltd after its strong listing run-up, the market expert suggested that comfort level is not there for investors at the current market price.
"The stock is trading 7-8 times compared to its price-to-book (P/B). There is a strong momentum after the listing but one may get this stock at lower levels. It seems to be more driven by the FOMO (fear of missing out) listing factor. Rather than chasing this stock at CMP, you should wait for other IPOs, which are there in the pipeline," Dua told Business Today TV. After logging a stellar listing pop yesterday, Bajaj Housing's stock continued its strong upmove and zoomed 10 per cent to hit an upper circuit level of Rs 164.99 today.
In response to a query on Ola Electric Mobility Ltd, the market veteran said the stock went up for a few days after listing and then it was available at a lower price. "One should consider this (Ola Electric's) example while chasing Bajaj Housing Finance," Dua mentioned. Ola Electric shares jumped 6.18 per cent to touch a day-high value of Rs 114.30.
From the two-wheeler space, the market specialist liked shares of Hero MotoCorp Ltd at current levels. "The stock is an excellent 'buy' at this price and it has started showing improvement in volume. With a good monsoon, the company will do well due to its large exposure in the rural segment. They also have ownership of Aether, an EV company, which is planning to launch an IPO. There are a lot of triggers in place of Hero MotoCorp and the valuations are also comfortable despite the appreciation that we've seen in the past year," Dua said. Last checked, Hero MotoCorp shares were up 0.76 per cent at Rs 5,819.55.
Meanwhile, Indian equity benchmarks were seen trading slightly lower today, dragged by automobile, metals and state-owned lenders. Broader markets (small- and mid-cap shares) were also down.