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Mkts to remain ranged before Q2 results: Angel Broking
Rajen Shah of Angel Broking believes the markets would range between 12,000-12,300 before result season starts and then move up even further from hereon.
Rajen Shah of Angel Broking believes the markets would range between 12,000-12,300 before result season starts and then move up even further from hereon.
Discussing the new listings, he says, "I would at best caution, in fact ask investors to stay away from many of these companies, which are quoting at 15-20 times PE multiple and where the growth is also likely to be about 10-15%."
Excerpts from CNBC-TV18's interview with Rajen Shah:
Q: What do you expect to see as we head closer to earnings? Now that we are well above the 12,000 mark, will there be volatility in a tighter range?
A: Obviously, we are going to see lots of volatility, but the way the market is behaving, it is clear that it is in very strong hands and is refusing to correct.
But I would be happier to see the markets correct. However, there is a lot of positive news. Commodity prices are coming down slowly, oil prices are almost at about USD 60 and the very fact that the sentiment itself is good, going into Q2 numbers.
I think the markets would range between 12,000-12,300 for the time being, before result season starts and then we could see the markets moving up even further from hereon.
Q: What are your views about the new listings today, Atlanta specifically?
A: I think most of the new listings are at fair price because if you see Atlanta, at about FY08 earnings, it is quoting at about 15 times or so. So I believe there are plenty of better opportunities in the secondary market.
So I would rather look at those opportunities, which have very good management and good valuations, quoting at about 9-10 or even 11 times the earnings.
A: Obviously, we are going to see lots of volatility, but the way the market is behaving, it is clear that it is in very strong hands and is refusing to correct. 
