The latest analysis and commentary by stock market guru SP Tulsian of sptulsian.com on what is moving the markets today.

Speaking about the Lok Sabha exit polls, which have predicted a clear majority for the Bharatiya Janata Party-led National Democratic Alliance (NDA), SP Tulsian said: “The things are looking quite positive, the decisive government which is seen coming in is really a very big factor because the continuation of the reforms which have been led by this government needs to be carried on and that is what will happen in the second phase also.”

Talking about capital expenditure, he said, “Coming on the capex that we have not seen any kind of capex that is wrong. Maybe government has been very upbeat on carrying out the expenditures on the social or Sagarmala kind of things. Even in private sector those who are really capable they have all been acquiring the NCLT assets.

"So probably the consolidation and the integration of those stressed assets have happened of the NCLT and now the capex cycle will start with the sentiments coming in. The last point is that FIIs have been whether you call it hedge funds they have exited in the very big way in this last three weeks with start of the series. In fact, I had said that remain cautious for the first three weeks but immediately from Friday go bullish and take a call ahead of the numbers on this election results. Once they start coming in you will probably be regretting that why I delayed and why I did not buy on the exit poll.”

While speaking about housing finance companies, Tulsian said: “NBFC, along with housing finance companies and also on Can Fin Homes, in fact we have been advising on Indiabulls Housing Finance and even if you take the fundamentals it is ruling at a PE multiple of maybe 8 times on expected EPS of about closer to 100-105 for the current year and if you take price to book also seen to be very reasonable. The only hangover is of the Lakshmi Vilas Bank if it goes through, if it doesn’t go through doesn’t matter but the way things are been prepared or similarly if we are talking on housing finance companies for that matter maybe LIC Housing because we have been keeping extremely positive on HDFC.

"HDFC is a must in portfolio because if you cater in housing finance companies you develop a relation with a customer not for two or one year but for one decade or two decades and that is kind of relations and the visibility you see in the growth of all these housing finance companies.”

He further said, “The fear of the recovery or the asset quality seem going away and that is the reason we are seeing Can Fin Homes or maybe LIC Housing or maybe Indiabulls Housing Finance — I am not taking a call on DHFL because that is a totally different story. But Can Fin or maybe LIC Housing or maybe Indiabulls Housing Finance still hold lot of potential. HDFC Ltd continuous to remain our top pick even at the current valuation.”

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