See Nifty in 4700-5200 range till July: Vibhav Kapoor

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In an exclusive interview with CNBC-TV18, Vibhav Kapoor, IL&FS, spoke about his reading of the market and his outlook.

Here is a verbatim transcript of the exclusive interview with Vibhav Kapoor on CNBC-TV18. Also watch the accompanying video.

Q: Do you think this leg of the correction got over with 4,700 or is another leg of downside waiting to happen?

A: The market is back, it is trading in the same range as we have been talking about, 4,700 did not get broken last time. So the range is 4,700 to 5,200 for the last several months and as long as that range doesn't break, we are going to trade in that range. So perhaps for the moment, I think 4,700 and 5,000 is the range that we are looking at instead of 5,200. But even if 5,000 were to get broken on the upside, I think you will be back in that range of 4,700-5200. So nothing has happened if you look at it.

Q: Does any of this sit with how we are approaching the Budget though, are you getting the sense that the market is going in more bullish or more bearish to the event?

A: One good thing this time is that you have not had that big pre-Budget rally that we have most of the time and big expectations that this will happen that will happen. So this time it has been much more sedate, more in tune with the global markets. So that is a good from the sense that normally after such big expectations, we have seen the market fall mostly after the Budget. So this time since there has not been much of a build-up before the Budget at least so far, I would think that you would not have those big type of falls after the Budget either.

Q: We have been talking about the Rural Electrification Corporation (REC) follow-on public offer (FPO), how would you rate the floor price that has been set at Rs 203?

A: It is reasonable, of course, we are positive on the power sector as a whole. So it is a good long-term story, but I don't think you are going to make big money in the short-term.

Q: Any thoughts on how to approach Bharti after the fall post the Zain deal, how would you be approaching it?

A: We have been negative on the telecom sector for quite some time. We have been staying away from investing in it because we think that as far as India is concerned, there is too much competition, there is very little pricing power with most of the people, there is 3G expenditure which is to come.

Now, in the case of Bharti, obviously they have been pining to go out and buy something, they tried it with the other companies. So obviously they also probably feel that there is not all that much great potential in the Indian market over the next few years. So I think this acquisition is definitely expensive, the ARPUs (Average revenue per user) are much lower, they are going to find it more difficult to beat out the same model that they have in India. But having said that, of course, the price has come down, so I think for long-term investors somewhere around Rs 250-260 would be a good price to get in. But don't expect any immediate fireworks.