Mkt upmove impossible, might slump instead: Brics Sec

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Mkt upmove impossible, might slump instead: Brics Sec

In an exclusive interview with CNBC-TV18, Anand Tandon, Director Equities, Brics Securities, spoke about his reading of the markets and the road ahead.

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Excerpts from Bazaar on CNBC-TV18 Watch the full show » RELATED NEWS Mkts to see upside in short-term: Sampriti Capital Experts see higher likelihood of cuts than upmove in mkts 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 Nifty BSE | NSE 10/02/12 Are Mutual Funds betting on Nifty? Other Stocks in this news ITC | Fortis Healthcare (India) |

In an exclusive interview with CNBC-TV18, Anand Tandon, Director of Equities, Brics Securities, spoke about his reading of the markets and the road ahead.

Below is a verbatim transcript of the interview. Also watch the accompanying video.

Q: Your thoughts on NMDC , doest it make sense to you at Rs 300?

A: We don't have an active coverage on the stock but as you have been pointing out the low float that exists in the market should not be taken as an indicator and the stock has had a sterling run and consequently trying to use that as a benchmark is hardly fair. So, that kind of pricing is probably more reasonable than what we are seeing right now.

Q: You do track some of these natural resource stories-you have been liking that as an idea, is it fair you think to price something at a value + + because of the nature of the business?

A: The natural resource companies broadly you have to look at from the point of view where you see prices of the natural resources going to. And, at least in terms of coal, it is our view that prices are actually go up significantly from there depends on what you take as a benchmark today. If you take Indonesian coal for example over the next three to four years you expect prices to go up two times from here.

So overall the natural resource companies will tend to track underlying prices. If you had the futures to trade you might want actually just want to buy the commodity futures rather than worry about individual company performance. But sometimes it's easier and since its different touch of class many people do find it just easier to buy the company stocks.