Nifty may hit 5000 first before 6000: Raamdeo Agarwal

Raamdeo Agrawal of Motilal Oswal Financial Services says it is quite possible that the market might see some surprisingly new low before it sees a high. "Nifty, in all probability, will hit 5,000 before touching 6,000," he says.

Commodity prices have cooled off post the killer earthquake in Japan. This, Agarwal says, may lead to simmering down inflation as well. Breakdowns in markets, he says, should be used to build positions. "If you have some cash and you think that your stocks are available at very-very cheap prices, you should go and buy," he advises. Current levels should be used to buy auto stocks, he says, however, adding that he is disappointed on disclosure levels in the Hero Honda deal. Looking at the kind of underperformance midcaps have shown for last almost a year or so, Agarwal feels it is the time to start building up position in midcap exchange traded funds (ETFs) or midcap indices. Also read: Too soon to start buying in Japan, India a safer bet: Veda Below is a verbatim transcript of his exclusive interview with CNBC-TV18's Udayan Mukherjee and Mitali Mukherjee. Also watch the accompanying videos. Q: How are you approaching this situation? It is something that none of us can predict or understand, but as an investor how are you approaching this situation? A: I don