What should be the market strategy for today?
I think market is expecting about 35 bps increase and more importantly since we have seen cool off in the commodity prices the sense one is getting is that probably we are at the fag end of the tightening cycle and that definitely boards well. However a lot will also depend upon the consumer inflation data which will be announced in the US and what stance the Fed takes. But I think overall we are in a good spot and I think the way the crude prices are actually weakening is definitely helping the overall market sentiment. If we see any small dip in the market either because of the credit policy announcements or otherwise I think we should have a positive stance on the market because when we look at the earnings, when we look at the other data points in terms of monthly numbers and GST etc. it gives you a feel that we are in a good growth trajectory and that is something that we should keep in mind.
What are your views on the exit of Aberdeen from and the huge amount of paper which is going to then hit the market? Do you think it will be absorbed quickly?
I think we keep getting this kind of block deals in the market and no doubt the size over here is a bit higher. But I think if the pricing is good there is enough appetite amongst the institutional investors and also some of the HNIs. Yes, I agree that AMC is not a space where people are too excited about given that things have not been the best in terms of growth or stock performance but it is a high quality stock and one of the very few companies which have this kind of a positioning and market share.
So I do not see a major challenge, but yes in the near term may be for let us say two or three weeks till the time it gets absorbed the stock could remain a bit muted. But overall I think it would be taken pretty well.
has emerged as an L1 bidder for 9000 HP 1200 electric locomotive project. Also, in their management meet have said about a stable growth outlook across segments and they have also reiterated their medium term revenue target of Rs 6000 crore. So what are your views on Siemens and BEML?
I think Siemens is doing pretty well and the entire capex/defence theme is playing out well. We think that there are more legs here because it is just a starting phase of the entire capex cycle. So I think Siemens though the quarterly numbers were not better than market expectations but given that the overall momentum on the order flow is good, traders would definitely like it. I think it should do well from a medium to long term perspective.
As far as BEML is concerned it is an extremely good company. It has very reasonable valuation and most importantly there is a strategic divestment lined up. So I think it is something that would do very well once we have that actual transaction taking place. I think there is going to be a significant rerating for a stock like BEML.
is something where growth is there, balance sheet is cleaned up now, sector is doing well, it is perhaps the only asset from the government’s table where I can say that ek aanar sau bimar, too many takers are there. Would you chance your arm in IDBI Bank at Rs 58-59?
I think the timing could not have been better for the strategic sale. We have been talking about it for many many years but I think it is about the timing and I think given the way the market has actually rerated the entire PSU sector and more so the PSU banks this will fit into that theme.
So if the valuation is good there is definitely going to be an interest over there. Now talking about our view I think we tend to look at the companies where there is a much better visibility so we would like to go for something like a
where you are seeing the numbers, you see the transformation and you see the growth ahead. I think we would be more comfortable going with those names or some of the listed PSU banks may be an which has really not participated as much and which is more of a small bank rather than IDBI because these kind of delays in the actual transaction can cause a wild swing so we tend to avoid those.
Where within insurance if at all you find comfort to buy right now?
I think these general insurance plays are looking quite okay. We have a positive view on both
and Star. I think given the fact that we are seeing a very strong traction on the OEM side and coupled with the composite licence guidelines which have been announced recently is definitely a game changer and that would have some positive rub off on the entire insurance space. So we do think that the overall timing is good. We have a liking for and in the general insurance space ICICI Lombard and Star Health.
What are your thoughts on given the fact that we have got the open market buyback that opens today? The maximum price is at about Rs 1850 per share and it is a buyback of about Rs 9300 crore. Also, what is your view on those crude related stocks given the fact that crude oil prices have dropped significantly and industries such as airlines, tyre, cement and paints are all stand to benefit?
Absolutely, I think there is going to be a good amount of positive rub off on the airline companies as well as oil marketing companies. Tyre companies like
and Apollo both have seen good traction and a further dip in the crude oil prices would definitely board well for them. I think this entire crude oil price cut is coming as a big positive development for this entire space including the sentimental impact that it will have on the market.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
