Moneycontrol » News » Stocks » Brokerage Recommendations

Reduce HCL Tech, target of Rs 270: IIFL

Published on Wed, Aug 26, 2009 at 11:41 | Source : Moneycontrol.com

Updated at Wed, Aug 26, 2009 at 11:44

31369 Investors following HCL Tech. Share this News with them.

Share on Tumblr

ALSO READ

HCL Tech

BSE | NSE 28/05/12

Are Mutual Funds betting on HCL Tech?

Amit Dalal of Amit Nalin Securities said that the Dow and the S&P's strength would pull up Indian markets and even other Asian markets. The Nifty, he said, would cross 4,700 ahead.

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

Q: Do you think we will be lucky to get past 4,700 the roof of the market this time or you are not convinced?

A: I think we will. As I mentioned last week also that the Dow and the S&P's strength is something that is going to pull up our markets and even other Asian markets, it's just liquidity that will follow. I have this theory and we have three stages, one, when the markets are the lowest, when the perceived risk is the highest and the actual risk is the lowest. Now, we are starting the third stage. I think we started it last Friday, where the perceived risk would be the lowest and you will have huge participation across the board. The actual valuation risk is perhaps going to be the highest now and that stage goes on perhaps 15 days or three weeks, I don't know how long. But definitely we will cross the previous high.

Q: How have you read the collapse of talks between Diageo and United Spirits?

A: These things are bound to happen on either a good or a bad front because these are two big large majors talking to each other and if they don't see eye to eye, perhaps the silver lining here is that United Spirits would not have given them up unless they felt they had a better option. That's perhaps the only conjecture on my part but otherwise not a very good thing to happen.

Q: How would you approach Aban Offshore ?

A: The way the liquidity is in the world and the fact that there is an improved scenario on earnings; they will be definitely able to restructure their balance sheet. It does worry me that they are able to raise and get these kind of charters because that means there is a higher price of oil forecasted by the oil majors. That's perhaps not at which the equity markets will look at favourably.

Q: Would you buy a Mahindra Satyam at Rs 110?

A: Yes, if you look at perhaps two years down the road there are going to be some hiccups in the middle and its not going to be a free ride. But if you take a two year view and if you believe that the technology sector is continuously going to perform better in terms of volumes which is what we are seeing. The erstwhile Satyam on its own was a very large participant in the global markets and there is no reason why this shouldn't continue.

Q: What about sugar, they have corrected on fears of government intervention, is it a buying opportunity or do you think these stocks will fall further?

A: In terms of the fact that they may fall 5% sure they could. But if you are taking an investment call, yes, for the next six months sugar is on a roll. There is a global shortage of sugar, sugar prices beyond the levy quantity which the government will spell out is going to be almost free, even though there is going to be some political pressure. So, definitely these companies would make a lot more money in the next two quarters. When it happens in terms of the sugar cane prices next year, that's perhaps the area where I would start getting concerned which may happen towards September-October, we will come to know what's the next season like.

Attachments : tfp20090826.pdf

Set email Alert for HCL Tech