Equity calls: Mahtani, Smythe
Published on Wed, Jul 16, 2008 at 08:41 , Updated at Wed, Jul 16, 2008 at 08:43
Source : moneycontrol.com
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Sam Mahtani, F&C Investments: Indian markets have seen an outflow of USD 6 bn. I expect outflows to slowdown in coming months. Oil prices are unlikely to continue rising and see inflation and interest rates coming down over next 12 months. This is a buying opportunity. I expect 20% earnings growth over the next 1 year and the market can rise at least 20% from current levels. Stuart Smythe, Macquarie: Crude's fall overnight may help the market today but I expect to see off-shore funds cutting positions due to the forex risk. US banks stocks will have a contagion effect on India today. We have downgraded many of our financials stocks to reflect a slower growth environment as inflation and crude continue to be a concern. Near-term pressure is likely to continue ahead of Citi's results this weekend. |
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