Nifty won't fall below 4500-4600: Emkay Global

Excerpts from Bazaar on CNBC-TV18 Watch the full show » RELATED NEWS Vibhav Kapoor sees Nifty in 4700-5200 range in 4 months 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 01/06/12 Are Mutual Funds betting on Nifty?

Q: The question is how do you approach December now, do you start clearing out high beta from your portfolio or do you still go with that space?

A: Investors always have to look at their stocks and wherever you find that the risk reward ratio is not in your favour, you should move out of those stocks and volatility should increase going forward. And so investors if they are moving out of high beta stocks and going into relatively high RoEs and good return stocks it is always better.

If I were to approach the bourses, yes if I am taking money off the table then its fine and inherently improve the quality of the portfolio.

Q: How do you approach the infrastructure space, some of the large companies have some exposure to Dubai. The fall in these stocks is a buying opportunity to you or you would be concerned about Dubai developments for them?

A: I think most of the corporates have come out in terms of what kind of exposures they have to the Dubai debt crises environment and it doesn't seem to be too big or for any of them to worry. So, I would not go and sell those infrastructure stocks just because they have exposure to the Dubai market and if the  markets are irrational and these stocks correct more than what is warranted, then it certainly would be a buying opportunity in those stocks.

Q: What do you do with the midcaps, if things get a little sticky or hairy for the market, how do you think that might shape up for the midcap space?

A: In the midcap space you have to look at each and every stock independently and what I feel is that the largecaps don't offer too many good opportunities from an investment perspective and that is why we are seeing that the industry is struggling at these 5,000-5,100 odd levels versus that today the demand in midcaps- for quality midcaps available at reasonable valuations. The buy side fund managers are very keenly looking at opportunities to invest in quality large midcaps. So, we are very positive but you cannot brush all midcaps with the same stroke. So, you will have to look at each and every midcap individually in terms of their growth prospect and their returns.

Q: The defensives are doing better as you would expect in a market like this, Ranbaxy is up about 2.5% to Rs 440, - do you expect the out performance to continue even from here?

A: There have been some positive news announcements from Ranbaxy and the stock has reacted positively, but if you look at the net present value of this opportunity- it is not more than Rs 15. So, we feel that current prices the stock is overpriced. But overall we are very positive on the pharmaceutical sector and it has done well in the last 6-8 months and going forward also we believe this sector overall should do very well and maybe outperform the Nifty.

Q; Aside from all this global action, in terms of the series itself or internals are you getting worried about anything for the market because yesterday the expiry day was very difficult in the last one hour?

A; There was a kind of sell off, it started off in the beginning of the day and it gained momentum in the second half of the day. But if look at the overall exposure-there was around Rs 40,000 crore odd of exposure between the index futures and the stock futures, which is similar to what it was in the expiry before that. So, overall it's not so heavy but what worries me is that the volatility on the options is quoting at 24-25% and that is reasonably low. So, there seems to be some kind of complacency amongst the large market players looking at the volatility and that is what is worrying to me.

Q: Siemens has disappointed with its number, do you track that?

A: We do not track that but I think it's reasonably expensive and there are better options in that segment.

Q: What about the likes of Tata Steel , how do you play that after looking at yesterday's numbers and what do you expect the metals to do?

A: At current prices we believe that the stock is fairly valued and in line with its international peers and looks like all the postivie in terms of volume growth going in Q3 to Q4 etc, all seem to be priced in. So, unless there is a major global recovery in the next two quarters otherwise the stock looks fairly priced at current prices.