Stock market expert Deepak Shenoy said on Monday that there is no big reason for the market to crash on Saturday and overpriced stocks might be the reason behind it.

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Shenoy told CNBC-TV18: "I don’t think some of the companies especially Hindustan Unilever Ltd (HUL) or Asian Paints or some of these guys are moving as a fundamental reaction to the Budget but it is more like a fear of having missed out, a feeling that rural inflation will be lower and then consumption will be higher."

Shenoy said there is nothing in substantiated data right now and he would just be wary at this point of time of valuations for these companies not for the rest of the market.

Speaking about rural and agriculture sector, he added: “This year may be an interesting time to play the agricultural and rural sector but I would like to see more data on planting, on crop, how the pricing happens.”

On Godrej Properties, Shenoy said some early interest is seen in the real estate space. While a lot of stocks are down, Godrej is up but the problem is that all real estate companies are balance-sheet plays.

The profit and loss statement is important because of the new accounting standards in Ind-AS have no connection to reality, he added.

Therefore, one has to analyse profit and loss statements over a very long period to get a structural analysis, according to him.

Shenoy explained the bigger thing that one has to look at is the cashflow statement and the balance-sheet, which in the December quarter has not revealed.

"So while I don’t have a specific view here, even if I didn’t look at the financials, I would not have so much of an idea. We have interest in this space not in Godrej Properties yet."

According to him, it is one of the most trusted brands and more pan India than some of the other players.

"In that context, if you are going down the real estate route, DLF or Godrej Properties would probably be one of the few people you would want to look at quite seriously.”

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First Published:Feb 3, 2020 3:40 PM IST