Nifty unlikely to hold 4600: Sampriti Capital

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Nifty unlikely to hold 4600: Sampriti Capital

In an interview with CNBC-TV18, Sandeep J Shah, Chief Executive Officer of Sampriti Capital, spoke about his market outlook.

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Excerpts from Bazaar on CNBC-TV18 Watch the full show » RELATED NEWS Nifty tests 5150; Bharti, ICICI Bank, SAIL, Wipro gain Be cautious at higher levels: Nirmal Bang Nifty may correct up to 5106-5079: Angel 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 BSE | NSE 01/01/70 Are Mutual Funds betting on ? Other Stocks in this news ITC | Fortis Healthcare (India) | Hindustan Unilever |

In an interview with CNBC-TV18, Sandeep J Shah, Chief Executive Officer of Sampriti Capital, spoke about his market outlook.

Below is a verbatim transcript of an exclusive interview with Sandeep J Shah on CNBC-TV18. Also watch the accompanying video.

Q: Post Budget we have come up a bit, close to that January high. Do you think we can take out that January high or you remain circumspect?

A: The Budget in some sense was a game changer for the FII, to the extent that it altered their perception of India. Going into the Budget, most FIIs, more than 40%, were underweight in India. Given the fact that the FM kept most of its promises and did nothing to affect the status quo in a sense and also outlined the direction in which the finances of the country to move, that's what has triggered off a burst of buying. The bulk of the buying has already come in. We are already beginning to see some signs of those flows tapering off a little bit.

There could always be a bit of short term upside left, but pretty much the call that I had given on December 30 on your show that short the Nifty with a stop loss of 5400-5500, would hold through even now. We went down all the way to 4600-4700 which could have been a great time to actually cover. So the market could move up a little bit from around here in the very short term. However, there is nothing to change the broad view because consumer, debt crisis, financial institution or the bank crisis has simply moved to the books of the governments and that's why we are seeing that in Greece and Spain and some of the other countries.

A country like the UK has more than 300% debt. We are already seen some signs of people wanting to short that market the currency rather because the currency is the measure of confidence in the country. I don't think we have seen the last of the sovereign debt crisis yet and I can't see it end with a country like Greece. I think there is a great risk that far bigger countries will show signs of a concern to investors. At that point of time, one would look and see whether that crisis is over.