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Chat Transcript

22 Nov - 10:00 hrs

Varun Goel | Head- PMS, Karvy Private Wealth

 

What is the outlook on equities?

Chat Transcript

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guest: Market condition is good for new & fresh investores
Varun Goel: We maintain our year-end Sensex target of 22,400. A good monsoon, strong export sector, continued monetary stimulus in US & a stable Euro area are significant positives for equity markets. With domestic macro-economic data also on the mend, we are aggressive buyers of Indian equity.
guest: Hi Sir, I would like to know what the top picks with a time frame of 1 year.
Varun Goel: Pharma, IT and Auto have been best performers in the last six years, while Banking, Oil & Gas, Capital Goods and Metals have been worst performers. We expect this trend to start to reverse going forward. With the normalization of Repo MSF corridor, we believe RBI might pause in the immediate future. With monetary policy risk out of the way, we have turned positive on interest rate sensitive sectors like banks and automobiles. We expect export oriented sectors like IT to continue to benefit from the significant rupee depreciation seen this year. Telecom is another sector which might deliver strong earnings due to return of pricing power & reduction in competitive intensity.
guest: what is ur view on State Bank of India
Varun Goel: We have turned positive on PSU banks after 3 years. we believe that the worst of asset quality issues are behind us. The bond yields have also peaked and should moderate going forward
guest: Sir, I have 25 pc of each IDEA CELLULAR & Reliance Comm. Worth on holding and if so, how long. Currently in loss.
Varun Goel: telecom stocks are looking quite attractive. we would recommend increasing exposure here.The regulatory hurdles and competitive pressures seem to be reducing. Incumbents have started to increase tariffs slowly and pricing power is returning. We believe that consolidation will happen sooner than expected.
cpadival: At the present level can I start accumulating OIL INDIA & ONGC
Varun Goel: We have a negative view of oil and gas companies as there is still no clarity about the subsidy burden they will have to bear
guest: Hi,I would like to hold Tata Steel for a longterm. Could you please tell your view on above stock
Varun Goel: The significant rupee depreciation that we have seen this year will help steel companies. The import parity price of steel has gone up thus allowing steel companies to take regular price hike. We like domestic oriented steel producers
peeyusharas: whats the target for Hexaware for medium term?
Varun Goel: We are positive on midcap IT companies with good volume growth visibility. The rupee depreciation has made even mid-tier Indian IT companies very competitive in the global IT market
moderator: This chat has now ended. Thank you Mr. Goel for sharing your views. Thank you to all the participants for posting their queries.
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