Market moody about stocks today, says Tulsian

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Market moody about stocks today, says Tulsian

SP Tulsian, portfolio manager at sptulaisan.com spoke to CNBC-TV18 about certain stcks and how the markets will react to news there.

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Excerpts from Bazaar 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

SP Tulsian, portfolio manager says he won't be surprised if JP Associates continues to do better and if ONGC will get Rs 12,000 crore after 5 % divestment from overseas and domestic institutions. However, he is surprised to see Bank Nifty showing strength and disappointed on the delay in monetization of Cogen, which is no longer as exciting as expected.

Below is the edited transcript of the interview. Also watch the accompanying video.

Q: What did you make of JP Associates numbers?

A: If you see their cement and their construction division, both have performed well. There are some issues maybe in respect to the other incomes but the kind of run up which we have been seeing either in capital goods or the infra stocks or the cement space has not seen getting reflected into the price of this company. In fact, more upside shall be seen from the current level and that trend will continue. I will not be surprised to see shares moving to about Rs 90 in next month or so.

Q: What do you hear about the interest on ONGC if there is that 5% divestment? Is it mostly domestic guys who will buy or are institutional investors interested in it as well?

A: I think overall, there is a very good appetite from the overseas institutional investors and the domestic institutional investors as well. I do not think that there should be any problem for the government to make a divestment even if they keep a maybe band of Rs 270-275 or a floor price of Rs 270 which is most likely to be the price range only. The government will make efforts to garner or mobilize about Rs 12,000 crore from the 5% stake.

Q: Have you also given up on your expectation of a February correction?

A: Yes, because if you see the Bank Nifty on which I was counting to be a weakness candidate has been showing strength. Yesterday it has moved passed 10,500. In fact it has been holding close to 10600. In my view, I felt that that it will be the weakest sectoral index but that is not happening. For the last six months, we have been seeing a range bound, probably the bulls or the trader have formed the sector rotation. If you see again yesterday we have seen the automobile and the infra stocks or maybe the capital goods again coming back in the limelight. So possibly, it is a sector rotation happening on the short duration of the couple of days and then again, there is shift in the other indices. However, the bulls are looking tired without seeing a breakout, but even bears are not having courage to go short at these levels. So yes weakness is not seen which was expected by me. It is likely to come in at least in the second half of February series.

Q: What did you make of Renuka 's numbers and the views of the management?

A: There was a disappointment in respect to the delay in monetization of Cogen and dilution of stake in their Brazilian operations. Then again, the company has hinted that, actually this was earlier expected by 31st January. They have been very categorical that it will happen and that's the reason the results were also delayed. Although now it is said, that it will happen in the next couple of months. If that happens then that will give them an infusion or the money mobilization of about Rs. 1500 crore and that will really be putting good relief on the company. However, on the result front I do not think that they are exciting. The kind of expectation I had from the Karnataka based sugar mill, even after I exclude the depreciation of about Rs 250 crore still their cash profit of Rs 170-175 crore is not too encouraging. So I will not be disappointed but I will not really be too excited as well.