See fall in cash levels globally: Antique Stock Broking

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In an interview with CNBC-TV18, Anish Jhaveri from Antique Stock Broking, spoke on the sidelines of Antique India Investor Conference.

Here is a verbatim transcript of an exclusive interview with Anish Jhaveri on CNBC-TV18. Alos watch the accompanying video.

Q: How is the investor mood at your conference?

A: India is back and reforms are going to be a reality. The government seems to be working and this seems to have turned on investors to a large extent. We are seeing this across all the companies.

Q: What is your sense on fund flows from global institutional investors?

A: The cash levels in portfolios seem to have fallen substantially. In upwards of 10%, its way below 5% now, which shows the buoyancy and prevailing mood in US.

Q: What is garnering more interest, midcaps or largecaps?

A: The larger companies have been well discovered stories. There has been interest whenever there have been midcap stories. There are no constraints faced by investors that they will not like to meet and see the story which can go from small to mid to large. The transition is what investors want to catch.

Q: Over the last few days we have heard noises about the Direct Tax Code (DTC) could be pushed, some noises on how oil sector reforms also may not take shape. Is there any worry on that front?

A: Yes investors are concerned if the government is serious on oil sector reforms or not. Whether it's the DTC or GTC implementation, most investors realise that it's a matter of time and not event which will hold back these reforms. Investors are hugely positive that this government will move and there is no option but to move in the right direction.

Q: What are your sector calls now? What are you underweight and overweight on?

A: We continue to be hugely overweight on anything which is consumption and demand related, whether it is autos or consumers. We are very bullish on infrastructure, especially those companies that are going and executing projects. Underweight, we are concerned on demand growth and prospects of real estate. So those are the sectors which are still in a bit of a worrying spot as far as we are concerned.

Q: What is your call on the NMDC FPO?

A: Even at Rs 300, it's not cheap but the government has done the right thing by pricing it slightly aggressively. One can always say that by pricing at 275-300 would have been better, but 300 is not bad at all. We see that at these levels, this issue will go through. At 300, we are not bearish on NMDC.