See earnings upgrades in FY10: Religare Securities

Q: What would you do with the oil pack now, big rallies in the oil marketing stocks? Is it a selling opportunity or they think the game is changing finally?

A: I think we need to wait and see. We had hopes on this sector coming ever so often and I think the key is also going to be how the oil price itself behaves because we are fine as long as it's in USD 70-75 per barrel range. Up to that mark, but beyond that if one has seen the government talk about deregulation and then roll that back every time you have oil prices rising. So for the short-term it looks good whether it's going to be maintained longer-term and these companies will become independent remains to be seen. But from a trading perspective, I think there would be opportunity in this sector in the near-term.

Q: What do you think as we have been obsessing about valuations these past few days but are we underestimating the money rush?

A: The liquidity flow is strong and I have been hearing what you have been saying. I agree that it has become a momentum market in fact the ceil of the market reminds me of the last three-four months of 2007 and the early part of 2008 where the market was focusing essentially just on good news and the kind of reactions we have seen now to announcements of capital raising and its still not proven that this is a easy market for raising money any more tells you that the momentum is indeed strong. I think if we learn any lessons from past trends, it is little dangerous at time to get sucked in by the momentum. So it depends on what your outlook is and what particular concepts you bring to the whole investing game. So as I said based on fundamentals or valuations, I will be wary of buying at these levels, having said that it is possible that with the money flow coming in, we could still see higher levels from here. So, I think you do need to be little cautious if you are looking at investing.

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It is safe to assume that my clients and I may have an investment interest in the stocks/sectors discussed.