Q: The infrastructure space has been abuzz this entire series. You have something like Lanco Infra reporting their numbers on Friday. How would you approach names like that?
A: I don't think that one can take a call on any of these stocks ( GMR , GVK , Lanco, IVRCL or Suzlon ) mainly from a result point of view. Buth the kind of expectation we have and the kind of shorts seen created in these stocks are the two main reasons which made them move 30-50%. I don't think that results will be that great, post-results we may see some profit booking and mild weakness coming in into these stocks.
Q: What is your view on BHEL and what you are expecting to hear this time after the tone that we heard from L&T?
A: With the kind of run ups seen in BHEL, I don't think there is further room to go up. You suddenly do not know when auction process or disinvestment announcements comes from the government and that can make it correct futher. I will be taking a cautious view, but I am maintaining positive view on capital goods. I will be comfortable taking a call on L&T, BGR Energy, Thermax or Cummins than BHEL.
Q: What did you make of REC earnings and how do you see it from here on?
A: Earnings have been good and in fact REC and PFC both move together. We have not seen sustainable rally in these twins. The worst part is that suddenly we see weakness coming in, which is purely because of technical reason. Results have been good, but I will be keeping my cautious view, it can move up on Friday and Monday, but thereafter again weakness may come in them.
