The stock market has already witnessed a lot of correction and the Nifty is now likely to hold a sub-11,000 level for the next six months, said Dhananjay Sinha, head of strategy research and chief economist at IDFC Securities.

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On Reliance Industries, Sinha said there is a positivity with respect to transactions that they have announced. "I think the market might sustain the bullishness especially in the context that other components are not so positive at this juncture.”

Sinha said that the latest auto industry data showed continued weakness in demand and people will still be worried about it. "However, I think there has been a considerable amount of correction that has happened in many of the original equipment manufacturers (OEM) stocks. They are looking cheap,” he said.

“The cycle could still take about a few months before it starts bottoming out and before investors start to seek interest in those stocks. These stocks are at valuations which are very cheap and if one has to consider for a horizon of two years or so, one could accumulate over a period of time,” he added.

He believes the government will be in action with some kind of stimulus on the spending side.

In terms of non-banking financial companies (NBFCs) announcement that has been notified, he further mentioned, “At the margin, it is a positive from a sentimental standpoint. It does appear like the framework is somewhat more liberal than what it was announced in the budget where it was seen to be valid for only six months. It has been extended beyond that. It is beyond one year and it has been more liberal than what was initially thought. Sentimentally it is better than what the budget announcements were. It should help generate liquidity within the NBFC space. We have been underweight on NBFCs, I am not changing that view anytime soon.”

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