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A K Prabhakar
Senior Vice President Equity Research, Anand RathiDate : 15 Jun 12 | 10:00 AM |
| Smartinvestor : Hi, this is Surabhi Roy and we have AK Prabhakar, Senior Vice President (Equity Research), Anand Rathi back with us today morning for the Talk Show |
| Smartinvestor : Good morning Mr Prabhakar and welcome back |
| A K Prabhakar : Good morning! |
| Smartinvestor : The recent economic data may have put the RBI in a dilemma. What is the likely stance by the central bank in terms of key policy rates and the cash reserve ratio now? |
| A K Prabhakar : There seems to be no respite from inflation, andthe RBI has little choice but to ease monetary policy. We expect a 50 bps CRR cut on June 18, which would ease the acute money market liquidity shortage. A symbolic 25 bps repo-rate cut is possible. |
| Smartinvestor : What is your take on rate sensitive sectors, especially banking in wake of the recent developments? |
| A K Prabhakar : Mainly PSU banks looks very weak and correction looks possible, and advance tax numbers would give the first hint. Punjab National Bank (PNB), Bank of Baroda (BoB), Axis Bank and Corporation Bank are few banks which look weak and can correct 8-10% in near term. |
| Smartinvestor : So, you in buy mode or wait and watch mode as things stand right now? |
| A K Prabhakar : Holding 30-40% cash is better this point of time as Dead Cross has happened in Sensex and in a day it can happen in Nifty also. This is an oldest form of analysis based on Dow Theory. It works on lag impact and more than 60% is success ratio and many negative events may also point to weakness in the market. |
| Smartinvestor : India's largest mortgage lender HDFC has been downgraded by Macquarie Research to “Underperform” from “Outperform” with a target price of Rs 550, which is a cut of 30%. What is your call on the stock for long term investors? |
| A K Prabhakar : I would avoid commenting on HDFC. The stock is very expensive and some correction is expected on cards. |
| Smartinvestor : Apart from worries of high interest rates, the recent proposal to levy steep tax on diesel vehicles has weighed on auto shares. What is your call on four-wheeler majors Tata Motors, Maruti Suzuki and Mahindra & Mahindra? |
| A K Prabhakar : There is already a slowdown in Auto sector and any new tax would play a spoilsport. Tata Motors looks to correct below Rs180 in near term and Maruti Suzuki has already been impacted by slower sales of petrol vehicle, while we like Mahindra & Mahindra from the space. |
| Smartinvestor : Can you suggest three stocks from the mid-cap pack (with targets) that can be bought at current levels or on a decline from a medium-term perspective? |
| A K Prabhakar : The stocks which look good for medium and long-term are Rallis India, NBCC and MOIL with a price target of Rs 168, Rs 160 and Rs 350, respectively. |
| Smartinvestor : Thanks Mr Prabhakar for your time and advice. See you again soon |
| A K Prabhakar : Most welcome. |
| A K Prabhakar has logged out at 15-Jun-2012 10:13:14 am |
| Smartinvestor has logged out at 15-Jun-2012 10:13:19 am |
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