See mkts consolidating next quarter: DSP Merrill Lynch

Excerpts from Bazaar on CNBC-TV18 Watch the full show » 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 10/02/12 Are Mutual Funds betting on Nifty?

Jyotivardhan Jaipuria, Head-Research, DSP Merrill Lynch, said the March-June quarter was probably the best quarter in the last 15 years. "The market has got a bit expensive, it is no longer cheap. I would be looking at markets consolidating or coming off a bit over the next quarter," he added.

Commenting on the Budget, he said, the good thing was that expectations from the Budget were not very high. He didn't expect the Finance Minister (FM) to do much for the market in the Budget.
He said earnings per share (EPS) would go up but was little skeptical whether they would go up in 2010 itself.
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Here is a verbatim transcript of the exclusive interview with Jyotivardhan Jaipuria on CNBC-TV18. Also watch the accompanying video.

Q: How do you find the market positioned before the Union Budget?

A: I think the good thing is that expectations from the Budget are not very high. There is no great euphoria that we will get a lot of tax cuts. So that is a good thing going into the Budget but what we have had is this quarter has been a great quarter. It is probably the best quarter we have had in the last fifteen years. So to that extent, market has got a bit expensive, it is no longer cheap. I think in the Budget, per se, I don't think the Finance Minister (FM) can do anything very dramatic for the market as such. So to that extent, I would be looking at markets consolidating or coming off a bit over the next quarter.

Q: What about this qualified institutional placements (QIPs)? A bunch of them have happened this week, how would you look at the stocks which have managed to raise capital this week, the big infrastructure and real estate plays?

A: The good thing about them is that they have all got money. So to that extent, it becomes easier because if we are looking at growth in India, we need the companies to get money so that they can implement the projects. Of course the negative thing is what it does for short-term from the market point of view, it sucks away all the liquidity which was there in the market because to some extent, people had missed the election rally in India because the markets never gave anyone a chance and now everybody's weightage in India is going up because of the QIPs. So to that extent, the money which will flow into the secondary market probably is now much lower than what it would have been otherwise.
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