Published on Tue, Jan 02, 2007 at 11:19 | Source : Moneycontrol.com
Updated at Tue, Jan 02, 2007 at 21:39
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FIIs to augment liquidity largely: DSP ML
In tune with most investment advisors, Sanjay Sharma of DSP ML says that the bullish trend in India will continue through 2007. He says that there is enough liquidity to absorb all the new offerings in market.
Q: Would you lay a question mark on the valuations of these IPOs at this point in time?
A: No. The two companies which came out with IPOs last year - Parsvnath Developers and Sobha Developers - have given decent returns. I think there is a lack of quality equity stocks in the real estate sector and the more that the IPOs come in with proper disclosure and all the information coming in at one place would be helpful and investors would like to play on this.
Q: How about health care? Fortis is about to come out with a Rs 1000 crore issue. Are you bullish on that sector?
A: Yes. Health care should be doing well, but I am not personally involved in that IPO; so I don't have details on that counter. But yes, health care with specialised hospitals would be a key growth area going forward.
Q: Are you going to keenly watch out for retail? It seems to be a sector that is catching your fancy?
A: Retail is going to catch up, but at this point of time I am not very sure whether they will use the capital markets to raise funds or use other resources. But certainly in the next six to 18-24 months, that sector should also come to the primary markets.
Q: What about public-sector undertakings like Power Finance Corporation and the need for them to tap the domestic markets for expansion plans?
A: That is also a sector which has huge capital needs. But personally I have not tracked the public sector companies from an IPO perspective.
