Stock view: Ambareesh Baliga's advice on Tata Motors, Infy

As far as Infosys is concerned, he still expects the disappointment to continue. "It is very much possible that you could again have a correction in Infosys post results," he adds.

Looking at the growth slowdown in China, he says, Tata Motors seems too expensive at these levels. "The momentum is there. So, it is possible that it could move up more. But I think it should be utilised to sell than to buy," he suggests.

The Cabinet Committee on Political Affairs (CCAP) may meet today in the evening to decide on raising diesel, cooking gas and kerosene prices.

Baliga doesn’t expect anything much from today’s meeting. "Unless you have a Rs 5-6 rise in diesel, it is not going to make too much of a difference. You could maximum have a petrol hike of another Rs 5," he adds.

Also read: Current rally may continue; buy on dips, says Credit Suisse

Below is the edited transcript of his interview with CNBC-TV18's Udayan Mukherjee and Sonia Shenoy.

Q: Tata Motors was a big star yesterday, how would you approach that stock now?

A: I have not been too bullish on Tata Motors in the recent past. Looking at the growth slowdown in China, which is supposed to be the major market for JLR, it seems too expensive at these levels.

The momentum is there. So, it is possible that it could move up more. But I think it should be utilised to sell than to buy. I would be more comfortable at levels, which we had seen recently, closer to that Rs 215-220 levels.

Q: Are you hopeful of anything coming out of that CCPA meeting in the evening today? Even if we do get just a token Rs 2-3 diesel price hike, do you think it will matter to the market at all?

A: I really don’t expect anything much from today’s meeting. In the past couple of months, absolutely no policy measures been taken. Unless you have a Rs 5-6 rise in diesel, it is not going to make too much of a difference.

A Rs 2-3 rise will only create political issues for the government. So, I doubt whether that’s going to happen. You could maximum have a petrol hike of another Rs 5. That will not really help too much in the deficit. So, overall, I don’t see too much of a trigger from today’s meeting.

Q: In a month’s time, we will get the next quarter earnings as well. What is the initial indication that you are getting because last quarter after Infosys numbers the move was quite despondent in this IT sector?

A: I don’t think much has changed for the IT companies to show much better results than last quarter. As far as Infosys is concerned, I still expect the disappointment to continue. So, it is very much possible that you could again have a correction in Infosys post results.