Q: One of our re-rating triggers for the market in calendar year 2010 is what happens on the GST front, any preliminary takeaways on what was released yesterday and which sectors may then stand to benefit?
A: We are still doing our work there and so I reserve my comments there. But my big point is that as long as they get the GST rolling in a comprehensive fashion, I think we should be good.
Q: What about PSU disinvestment?
A: Here we clearly see traction, at least the government is talking; if you hear from the investment banking circles, people are already making visits to the government to figure out and I think there is some action happening there. So I think there will be serious effort by the government to disinvest next year which will alleviate the fiscal deficit which is what will keep bond yields low.
Q: In your 20,000 Sensex target you seem to favour many of the high beta sectors like real estate, metals, is it because balance sheet repair has happened or you believe in earnings acceleration for those sectors?
A: The first phase of the rally, in both the sectors was because balance sheet repair had happened. In the second phase I think there will be earnings acceleration. I think real estate companies would have hopefully learnt from their past mistakes and would not go around and buy land funding it from short-term sources and so if they actually start developing properties where we think huge under utilization or under penetration, we think that sector will stand to benefit
On metals our view is that global prices will eventually start moving up, I cannot say that across all metals but on aluminium we are very bullish.
