Momentum for consumption stocks continues in the Indian market and fresh money is still coming in, says market expert Anand Tandon.

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“We have become a market where incremental flows go into those stocks which are performing and people are not trying to find value over here. We have been a one-legged market for a long time and will continue to be,” Tandon told CNBC-TV18.

According to him, it is unlikely that anybody will be taking money off in a hurry unless something changes dramatically or some of the sectors start to perform after which there could be a portfolio churn.

With regards to Infosys, he said most of the allegations do not hold water, especially the ones in terms of margins not being enough in new deals. " I would not put too much stress on that. The reality is -- is there any understatement of expenses in the past and any attempt to significantly change profitability. If for these two the answer is positive then we are not done yet, but if the answer is negative then it is time to buy,” he noted.

So one does not know till the board does an assessment of how damaging the numbers are, said Tandon. However, since the information has come in from insiders there is no more information than what is in the public domain. So, it is difficult to take a view on the stock. “I don’t think there will be a dramatic restatement given the kind of pedigree it comes from,” said Tandon.

Talking about NBFCs, he said, “The ones you can straight away eliminate are those which don’t have a strong parentage because in today’s market the ability to raise money is the predominant issue.”

When asked about Bajaj Auto and Hero MotoCorp, he said they do not look attractive and if someone has already invested in it at the right time as a trading portfolio then they should look at exiting them. “Not the best of plays at this stage,” he added.

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First Published:Oct 22, 2019 5:40 PM IST