Prakash Diwan, a stock market expert, spoke to CNBC-TV18 about market fundamentals and 2019 Lok Sabha election results.

“There is no fundamental attached to the low volume rise in the indices. The sharp increase was basically predicated by the FII buying. Today I will not be surprised if the FII selling number is negative; I mean it is much larger than the domestic buying. If retail has to come in, and which has not yet come in, there is no capitulation. So, 38,000 may not happen in a hurry, in fact you could have some resumption of genuine buying and inflows coming into mutual funds again, a lot of people who had waited for this event to be over and saying now I know clarity is there for five years, there is policy continuity and all that, this is where my money comes in. You will start seeing the market build up but there could be a little bit of consolidation before that,” Diwan said on Thursday.

With regards to various sectors, Diwan said, “Look at cement, housing for all, infrastructure, whatever it is, cement is going to have that operating leverage. The numbers tell you that. You look at JK Lakshmi, you look at JK Cement, you look at UltraTech Cement, everybody has shown – and remember April to June we have not yet seen the pricing impact positively priced in. Up to March, there was no price hike, the hike is coming much later. So, cement is one of the best placed. You could take your pick, I like the midcap playout there like Mangalam Cement or JK Lakshmi, Heidelberg Cement.”

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