Check out: Anand Rathi's top 3 picks of Q4 results season

Excerpts from Markets Midday on CNBC-TV18 Watch the full show » ALSO READ See what other experts are saying about markets See what FIIs are saying about the markets See what Udayan Mukherjee is saying about the markets TCS BSE | NSE 31/05/12 Are Mutual Funds betting on TCS? Other Stocks in this news HCL Technologies | IndusInd Bank | IDBI Bank | ING Vysya Bank | Indian Bank | Axis Bank | State Bank of India | Punjab National Bank | Bank Of Baroda | Cox & Kings | Jubilant Foodworks | Thomas Cook (India) |

In an interview with CNBC-TV18, Devang Mehta, Anand Rathi Financial Services spoke about the quarterly results released so far and his outlook for the market.

He said, "Of the results that have come what we have seen we do like the results of TCS . In the midcaps we like IDBI and IndusInd Bank which have also come off with great numbers."

Below is the verbatim transcript of Mehta's interview with Anuj Singhal and Sonia Shenoy of CNBC-TV18. Also watch the accompanying video.

Q: What have you made of the earnings so far and going forward what's the kind of range you see on the markets after the earning season?

A: We have seen is a mix sort of a result season but it is more skewed towards the better results. We are seeing across the board, generally good results except for the debacle of Infosys which was a very bad thing for the market for one or two days. But, now market has probably got an overrate and its now reacting to some positive results by TCS, HCL Tech .

Lot of smaller banks like IndusInd Bank, IDBI Bank have come with good set of numbers even ING Vysya , Indian Bank , all these banks have shown considerable resilience in these times.

My take is that markets hereon can trade in the narrow range of 5,700-5,800 to maybe 6,100-6,200 and in this result season at least and hereon from what the corporate earnings have to do and how interest rates and inflation settle down will be seen going forward.

Q: What about Axis Bank , it's down about 4%. Do you think the market is being little too nasty with the stock? Or you think this kind of a cut is deserved and where are you in terms of a target price now?

A: We do like the stock a lot. Axis Bank is currently is correcting because it had run up a lot because of the result expectations. The results except for the NIMs seemed to be robust, fee income was great, credit growth also was quite good.

In fact we have rerated the stock. We have a fundamental price target of Rs 1,734 for a one year horizon and any dip in the Axis Bank counter would be an opportunity to buy for longer-term investors.

Q: What about State Bank of India? That stock is having good run today. That's up about 2%, still quite a way from its previous highs but approaching the Rs 3000 mark now?

A: We are not particularly as bullish on SBI . Today we are seeing some of the banks reacting to the changes in the provision norms that has been announced by the RBI. SBI wouldn't give as much comfort as PNB or a BoB for a longer-term.

Q: In the broader market, you spoke about a whole host of stocks that came out with their numbers. If you had to give us your top 3 picks at this point in time what would they be?

A: Of the results that have come what we have seen we do like the results of TCS. In the midcaps we like IDBI and Indus Ind Bank which have also come off with great numbers.

Q: What about the overall market? At this point in time, there is this view that that perhaps 6,000 is a level that cannot be breached in the upside because of the headwins that we are dealing with. Do you see us conquer this level convincingly and what is your outlook?

A: It seems that lot of things are right now in the pipeline. What we are seeing is liquidity is driving the markets crazy. But what is good is that that's it's a market breadth that has become quite positive. Also, risk appetite seems to be coming back by the way.

We see midcaps doing well select midcaps and that too those having sound fundamentals. My take is that there is lot of momentum still left and we could see 6,000 being crossed in sometime.

Q: In a market like this where you are seeing almost flat market, is there any midcap idea or any couple of midcap idea that you are recommending to your clients now?

A: We are recommending as I said IDBI, Indus Ind Bank. Also as a theme, we do like the travel and tourism space, Cox & Kings seems to be good candidate which could be rerated going forward. We are seeing across the board lifestyle, leisure as well as business traveling increasing across India as well as other destinations.

With the World Cup just over and the IPL season doing well and also the vacations on. We feel that hotel space as well as this travel and tourism space could do well going forward.

Q: Jubilant Foodworks has not seen any stoppage in terms of an upward move in the last one month, it moved all the way from that Rs 500 level or so Rs 550 and now sitting at Rs 700. Do you track that stock and do you expect to see more of a run up there?

A: No, we do not have an official coverage on Jubilant. The stock has moved up and a lot of such themes where people are graduating from maybe necessity to luxury.

Themes like watches as well as jewelry as well as something to do with food as Jubilant could do well over the longer-term as the consumption theme takes over the next three- four months. After that the investment theme could take over in the second half of FY12.

Q: Thomas Cook seems to be doing quite well off late in today's trade? Have you made comparisons between the two in terms of which looks more interesting?

A: Yes, generally both of them look good. But Cox and Kings seems to be a lot more attractive as it has lot of point of sales for its company. It's also going to make lot of inorganic acquisitions going forward. Probably Cox & Kings will be our pick at this point of time.