Pure liquidity play ruling the market; watch out for infra stocks: Dimensions Corp

Equity benchmarks were trading at high points of the day, with the Sensex gaining almost 200 points intraday, while the Nifty was higher by around 60 points.

The rupee firmed up 8 paise to 65.02 against the dollar on Monday, set off by fresh selling of the US currency by exporters and banks.

The local unit received some good support from higher domestic equities but a strong dollar overseas kept it in check.

The move raised questions on whether the shallow correction was past. “The current market has nothing to do with fundamentals, valuations or even earnings. It is a pure liquidity play,” Ajay Srivastava, CEO, Dimensions Corporate Finance Services told CNBC-TV18 in an interview.

Currently, the situation looks stable. “There is nothing that is hurting economic fundamentals as compared to last week. Oil is around USD 60 now,” he told the channel.

Srivastava is adding portfolios of consumer and infrastructure. The latter will get a boost ahead of elections, he added.

Speaking on the rally in Tata Group stocks, he pointed out that a major factor is leadership change at the helm. He pointed how the chairman had sold non-performing businesses and that difference had been brought in by the new leadership.