See inflation, interest rates to moderate next year: Kotak
Sanjeev Prasad of Kotak Institutional Equities said they expected inflation and interest rates to moderate next year, but rich valuations of our preferred stocks may prevent any further re-rating.
December 21, 2012 / 08:56 IST
Here are experts equity calls for the day on how the markets are expected to trade:
Robert Buckland, Citigroup: While we suspect that simple contrarian strategies are less appropriate for the mid-cycle grind-along performance expected next year, these contrarian ideas have performed well in the last 3 Januarys. If you do buy commodity-related stocks ahead of this rotation, we recommend taking profits in February.Sanjeev Prasad, Kotak Institutional Equities: We are reducing our overweight positions in certain interest-rate sensitive stocks like Bajaj Auto and NBFCs, given the sharp run-up over the past few weeks. We expect inflation and interest rates to moderate next year, but rich valuations of our preferred stocks may prevent any further re-rating. Indian markets are likely to primarily swing on global liquidity.Also Read
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