Vaibhav Sanghavi, Co-CEO at Avendus Capital is of the view that market has been consolidating for a month now.

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" We saw a sharp rally from 10,800 to 12,000 post the corporate tax cut announcement and we have been consolidating in this 200-300 point range for long now. We should be looking towards the budget now. There are high expectations and market would be excited about it and would be looking positively towards that kind of event,” he said.

Generally, in the second half of December, foreign participation is little low because of which the liquidity in the market is also little less, said Sanghavi in an interview with CNBC-TV18. Therefore, here onwards we should be looking towards budget for a decisive move on the markets,” he added.

With regards to a pre-budget rally, he said a lot of expectations have been built up on back of what the the finance minister (FM) Nirmala Sitharaman has been saying over the last 15-20 days right from infrastructure projects to rationalisation of tax rates etc.

Sector specific he said, domestic pharmaceutical space looks pretty interesting. "Financial services is also is one area which we continue to be bullish about. The house is upbeat on private sector and corporate banks.

According to him, the slackness in the consumer demand seen over the past 18 month is about to turn and so they are constructive on consumption, both staples and discretionary.

They would also like to focus on some rural stocks purely because if there is some amount of food inflation, the money will flow in rural economy, he said.