Midcaps to be hit post Satyam scam: Ambareesh Baliga

Published on Fri, Jan 09, 2009 at 09:45 |  Source : CNBC-TV18

Updated at Fri, Jan 09, 2009 at 18:06  

137137 Investors following Mahindra Satyam. Share this News with them.
0
0
Share on Tumblr
Ambareesh Baliga, Karvy Stock Broking

Excerpts from Bazaar on CNBC-TV18 Watch the full show »

RELATED NEWS

ALSO READ

Ambareesh Baliga, Karvy Stock Broking feels markets could correct a bit more. According to him, there is still shock and disbelief in markets.

 

He is of the view that corporate governance issues will now be highlighted due to the Satyam scam. "Now, because of that midcaps have come under scanner. It will be the biggest jolt for midcaps going ahead. Not many investors will buy it for sometime."

 

Here is a verbatim transcript of the exclusive interview with Ambareesh Baliga on CNBC-TV18. Also watch the accompanying video.

 

Q: Do you play for a bounce back today after the reaction on Wednesday or do you think the market might correct more?

 

A: The way things are I think the market could correct a bit more because that shock and disbelief is still there among the investors. So I think we could possibly see some more correction.

 

Q: Is the run on the midcaps done though?

 

A: Yes because when it comes to corporate governance issues, which is the major story as of now surely it is the midcaps which would be under scanner. So I think the biggest jolt would be for the midcaps even going ahead and at least for a while not too many investors will come back and start buying midcaps.

 

Q: What are you telling your clients to do on Satyam today?

 

A: People who have bought it at much higher levels have already lost 80-90%. So I think for the balance 10%, they can take a chance because there are two schools of thought; one says that possibly it will disintegrate and shareholders may not get anything in that case, he will get zero but there is one outer chance that possibly you could have a white knight coming in and in that case at least some value could be salvaged. So when people have already lost 90%, they can take a chance for the balanced 10%. But if you are talking of a fresh investment in Satyam at this point of time, it is a clear no.

 

Q: Rs 14 on Satyam, what do you do now?

 

A: Nothing just stay put because at Rs 14 - when you have lost 80-90% already it does not make sense in selling at these levels. One should just hold on and hope for the best. Maximum what one will lose is just Rs 15, you have already lost Rs 300.

 

Disclosure:

It is safe to assume that my clients & I may have an investment interest in the stocks/sectors discussed.

  

More on Moneycontrol

Trending News

Business News

Iran's blocking internet access
Rupee rally may stall with fall against US dollar, euro "Rupee rally may stall with fall against US dollar, euro"

Sources Say Attorney General To Decide On Filing A Review Plea

The latest earning numbers FIRST on CNBC-TV18
Videos

Feb 10 2012, 21:39

Tulsian buys steel stocks; negative on sugar, ADAG

- in MARKET OUTLOOK

Feb 10 2012, 21:39

Truck demand sluggish; margins down 80bps: Shriram Trans

- in Results Boardroom

Interviews

Feb 11 2012, 11:52 | Source: CNBC-TV18

TCS to expand centers in N.America; CY12 focus on Japan  

Feb 10 2012, 15:43 | Source: CNBC-TV18

Growth in margins sustainable going forward: Shasun Pharma  

Subscribe to

Moneycontrol Newsletters

Moneycontrol.com offers you a choice of various sectoral and other newsletters for FREE!

Follow moneycontrol.com