India is looking more attractive and is receiving more funds
AK Prabhakar, Senior Vice President (Equity Research), Anand Rathi spoke to Surabhi Roy on the global markets, euro and investment strategy
Q: What’s the approach for equities for the second half of this month? Is it looking like a dull performance or some activity can be seen?
For second half of this month, most of the expectations were built up for post presidential election and the cabinet meeting which is lined up to discuss for the various issues and policy reforms. So considering this scenario there has been positive sentiments in the markets but stocks and sector specific movement has been seen through out and which we think will continue for the rest of the month as well.
Generally those stocks which have been making 52 week highs and all time highs will be performing. Positive actions can be seen in Pharma stocks like IPCA Labs, DIVI’s LAB, Cadila Healthcare, Lupin whereas Agri stocks like Tata Coffee, Mcleod Russel can give good returns.
Q: How do you see global markets for the rest of 2012?
Global markets are looking weak and there is no definite direction going forward. Comparatively, India is looking more attractive and is receiving more funds. Already $10 bn numbers have been crossed. If reforms set in going forward, this will be an add on to India.
Q: What is your view on the euro? Do you think there could be some upside in the euro?
Euro has seen panic and has also touched 2 years low. We can see some upside in euro to levels around 1.3.
Q: Reliance Inds warns of KG-D6 shutdown if capex not approved. Should the govt nod capex?
Government should act positively as going forward we should reduce our economies dependency on the global oil and gas supply. Therefore, considering this scenario government may give nod for the capex is our expectation.
Q: What is your investment strategy given the current scenario? Which sectors are you bullish/bearish on?
Given the current volatile scenario, we think following the Systematic Investment Plan (SIP) approach is best suited for the investors to get returns gradually. On the bullish side Healthcare segment looks good at this momnet and on bearish side Auto Industries have been facing lot of pressures on various strikes specially faced by the Maruti Suzuki. Labour reforms are long awaited and anything on this front will bring in confidence in the corporates as well.
Q: Can you suggest three stocks from the mid-cap pack that one can buy at the current levels from a medium-term perspective?
LIC Housing, Tube Invesments and Zydus Wellness are few picks from the mid-cap space which interest us for medium to long term.
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