Nifty to cross 5100; infra, banking best bets: Quantum Sec

It is time to start buying in India, says Sanjay Dutt of Quantum Securities. He expects the Nifty to cross 5,000-5,100 within a few days. “The Indian market corrected in line with global markets. However the extent of correction was surprising. Also, arbitrage and exchange-traded fund (ETF) money got unwound.”

Being bullish on the infrastructure space—more on mid-cap infra stocks versus BHEL and L&T, Dutt says infrastructure and banking are the best bets for Nifty’s rally towards 5100. Further, he is positive on Era Infra, Madhucon Projects and IVRCL.

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

Q: Any thoughts on Jubilant Foodworks?

A: I wouldn’t like to specifically comment on the company because one of our firms and one of my partners has a mandate for them and we are doing some work for the group. But to make a general comment on the quick-service restaurant (QSR) space, this is one of the first listing and the action has just begun in this space. The group is a good group, but I obviously say that with a bias. I think there is much more action ahead in the sector as a whole. One has to go and look for opportunities particularly companies which are following models like they are following. Because the biggest drawback in these food models and food retail models and restaurant models is that high rentals is what eats in because some of them are experiencing as high as 30-40% of their cost coming in, hitting as rentals and if that is the kind of model they have to run then they will not be profitable unlike what Dominos is doing, it’s got a delivery model.

I think the space has got a lot of action ahead, there will be many more companies which will come in the listed domain and one would look forward to good amount of restaurants listed. If you look at the West and US in particular, there are large number of listed companies which are in the QSR space and restaurant space and they have been fancied by the investors and held by large portfolios.