Market may see some correction post poll outcome: Manish Sonthalia, Motilal Oswal AMC

In a chat with ET Now, Manish Sonthalia, SVP & Head-Equity PMS, Motilal Oswal Asset Management, shares his market outlook. Excerpts:

ET Now: What is the view on the market right now about this upmove? The market is pretty much at record highs, but the key question is whether we go up from here further because the view is that the market would take us to 6700-6800 and beyond or do we retrace and perhaps get into correction mode?

Manish Sonthalia: My sense is that the markets are going to fire away to glory much beyond the expectations of the market as a whole before we see any meaningful correction.

So now that we are into uncharted territory, things are going to fly and all of that is going to come before the election results. And post election numbers, in spite of the NDA forming a government, my sense is you are going to see some correction. But it is all about expectations, and expectations coming to reality are still about two months away.

ET Now: I am surprised to see you are not smiling, you have been long and the market is doing so well that your stocks that you have called for the last six to 12 months have all done very well.

Manish Sonthalia: There is a sad part to this. The retail has really not made any money and the money that we manage on behalf of HNI and retail, it has been so difficult to convince these people that is the sad part, not many people have made big money in these markets, even though we are looking at an all-time high.

Either people have speculated in the F&O and lost a lot of money, lost most portion of their capital and not able to participate in the markets or even if they have participated in the cash market, they have booked profits and are sitting on losses, holding junk stocks and all of that has been very difficult to convince.

So the bulk of the money has actually been made by foreigners. They now control 50% of the free float of the markets, that is the sad part.