Q: You spoke about earnings upgrades, which specific sectors and stocks would you upgrade FY10 earnings?

A: Autos will see upgrades, some capital goods companies will be seeing upgrade, selectively some companies in the construction sector could see upgrade. So it’s going to be fairly broad based because most companies have benefited from lower commodity prices. So users of commodities see better margins.

Q: Markets almost pushing 15,000 even on the basis of earnings upgrades would you be able to work out a range or levels far higher than the current ones?

A: If you look at pure fundamentals then a lot of the valuations are looking fair or even expensive. But what currently happening is we are seeing huge wave of liquidity coming back into equities across the globe and in India we are part of the same phenomenon helped by the fact that we had a positive election results. So it’s little hard to argue with that flow of liquidity as long as it lasts and it’s possible that one could see valuations stretched further. But that’s what basically driving the market. If you ask me on pure fundamentals, I think we are at fair values or even a little higher and just based on valuations there is little argument to keep buying at these levels particularly the frontline stocks.

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