Midcaps to offer good investment options: BNP Paribas
Published on Mon, Oct 30, 2006 at 19:19 | Source : Moneycontrol.com
Updated at Mon, Oct 30, 2006 at 21:19
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Midcaps to offer good investment options: BNP Paribas
Head of the Advisory Desk at BNP Paribas, K Ramachandran is bullish on the Indian markets from 12-18 months perspective, but believes there is no money to be made in the short-term.
Therefore, I think global factors have been very supportive and from here on, you can't get any better. Only things can perhaps go wrong if the market appears to have digested almost all the good news and I think its time for the markets to consolidate and flatten out going forward.
Q: So what kind of dips are you looking at if you only take the Index? And at what dips will you be a buyer?
A: From here on, it may not be a very good idea to look at the index as such. One has to look for specific stock stories. One can't have a straight-jacket approach look at the Sensex or the Nifty because the overall market may not make much at all. It is likely to consolidate.
One can see a bit of action and catching up in midcap segment, but I think it will be a stock specific approach that will really help any fund manager to outperform.
Q: Fundamentally, you would be taking profit and if so, in which sectors or stocks?
A: It has to be across the board and one has to do a little bit of percentage investing in sense that one can look at sectors like FMCG or capital goods, which are probably below their all time peaks, whereas market is well above the all time highs.
So one can adopt those kinds of relative valuation plays, but I do not think the overall market has much to give in the very short-term. But if one takes 12-18 months perspective, then one can look once again for an outperformance of the Indian equities compared to the rest of the markets.
