With the Conservative Party winning the UK elections, the odds are in favour of Brexit. This is going to revive the metals and automobile sectors of India, so a Santa Claus rally is on the cards in December, Kaushlendra Singh Sengar, Founder of Advisorymandi.com tells Moneycontrol’s Kshitij Anand. Q: Indian market closes the week with gains of over 1%, and above 12,000 levels. Do you think the week macro data could spoil the party for bulls? A: The recent disclosure of Industrial Production and Manufacturing output data from the Indian Ministry of Statistics has spooked investors. But if someone conducts an intra-comparison of the data, we could devise that while negative, compared to previous quarters it does signal strong revival in the consumption story of India. Moreover, the reduction in corporate tax is going to push the total GDP of the country and its effects will be witnessed from the new year, which will leave corporate houses with more liquidity for disposal. Q: Do you think we could see a Santa Claus rally probably towards the close of the year 2019? A: Convincing statements from the United States and China's administrations in regards to the ‘phase one’ trade deal is going to unlock the untapped potential of both economies. Moreover, with the Conservative Party winning the UK elections, the odds are in favour of Brexit. This is going to revive the metals and automobile sectors of India, so a Santa Clause rally is on the cards in December. Q: The recent macro indicators cement fears of a slowdown. Do you think investors could say goodbye to a 25 bps rate cut in February? A: The recent statement from Home Minister Amit Shah on ‘reviving the fears of slowdown whatever it takes’ provides cues of deploying every possible tool to curb the slowdown. Hence, a decision of 25 basis rate cut in February will remain a backup if it is required. However, the cumulative reduction of repo rate by 140 basis points this year has left little or no room for further deduction in repo rate. Any further rate cut by RBI in order to leak more stimuli in the economy is going to be the last resort for the administration. Q: Any big factors which investors should watch out for the coming week or important levels? A: Headlines on the US-China trade deal is going to capture the sight of the market participants in the coming week. The continuation of complicated statements from the US administration will continue to keep investors on tenterhooks. However, a ‘fit and proper’ close of a trade deal between the two dragon economies is going to delight the global and Asian markets. Q: Which stocks according to you are displaying signs of a breakout? A) Tata Elxsi, Motherson Sumi, and Tata Steel.   Disclaimer: The views and investment tips expressed by investment experts on moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.LIVE