See upward momentum continuing till March 9: Destimoney Sec

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Due to the lack of any major news flow and the continuous inflow of liquidity, Sudip Bandyopadhyay, managing director and chief executive of Destimoney Securities, tells CNBC-TV18 that the market's upward momentum is likely to continue till March 9. "After that we have the election results and the Budget, so the period from 9th to 16th is going to be very critical for the Indian market," he said.

His strategy is to play the upmove till March 9, after which he says all non-aggressive investors should remove the money from play.

Below is an edited transcript of his interview with Sonia Shenoy. Also watch the accompanying video.

Q: What have you made of the news flow on Thomas Cook and some of these deals in the offing?

A: This is a very interested business which Thomas Cook has there. The money changing part and the travel business to my mind these businesses should be and probably if only they are sold separately, completely separately they will optimise valuations. As things stand today, Rs 2000 crore valuation looks like a stretch. I am not sure under the current market conditions whether they will realise this kind of valuations.

Money changing business is going through its own problems and own issues. The margins are continuously falling. Yes, Thomas Cook has a huge advantage because they are the only money changer who has a nostro account which gives them the clear benefit. They were a company which was in existence before RBI came into existence, so they enjoy the nostro account benefit so that distinct advantage is there. 60% plus of Thomas Cook business is coming from money changing. So valuation wise money changing is definitely interesting but it can not attract a huge premium to its current valuation.

Travel business again has its own set of problems. Thomas Cook is not an online model. It is completely offline model so valuation wise it may not be that attractive. So Rs 2000 crore looks a stretch, it is a strong company, solid company but Rs 2,000 crore bit difficult.

Q: You have any power stocks that you would be eyeing form here?

A: Adani Power looks interesting considering their international trading competence of the group as a whole. As soon as there is some positive development on the coal linkage front, they are the first company to benefit.

Q: Do you expect more of an upside and if yes what would be the best strategy be for an investor?

A: I see this momentum continuing till 9th of March. There are no other major events, Europe and US is playing along pretty well. Today the FOMC minutes will be released and their expectations that there will be further positive move on the quantitative easing, so things are good.

March 9th the election results will come out and we have the Budget on 16th, so for the Indian market the period from 9th to 16th is going to be very critical. The entire financial year market performance will probably depend on these seven-eight days and how events span out. So till 9th March the market will continue to move up with very clear impetus from liquidity coming in from all around.

Q: So is it safe to put money in rates sensitives? You wouldn't be too worried about the run up that they have already seen in banks, infrastructure, etc?

A: I won't be, except that you need to probably take that money off the table before 9th if you are not a very aggressive investor.