Select comm, IT stocks may push mkts beyond 6000: Sharekhan

The markets have been a bit languid since the past few trading sessions. However, an optimistic Hemang Jani, senior vice president, Sharekhan told CNBC-TV18's Latha Venkatesh and Anuj Singhal in an exclusive interview that he sees no significant downside at current levels.

"Low flows from FIIs, high commodity pricing and possible policy tightening may lead to a realignment of portfolios, which may go on for a few months. But the downside in the market is limited because it has already started factoring in some of these developments. Probably, another 100-200 point cut on the Nifty could happen," he reasoned. In fact, he believes one could see the markets heading up within the next six months. "Select commodity and IT stocks could help take Nifty pass 6,000 again," he stated. Below is a verbatim transcript of his interview. Also watch the accompanying video. Q: Do you think that this tepid effort at crossing 5,700 will be built on or do you think we are going to see much more weakness before any meaningful pullback happens? A: We think that, currently, we are going through a painful adjustment process of lower flows from the FIIs and that in a current environment of high commodity prices and the possible tightening that we may see, there is some kind of a realignment happening in the portfolios even at the institutional level. This process will go on for another couple of months. We do not think that there is a case for a significant downside from the current level because the market to a great extent has already started factoring in some of these developments. We think, probably, another 100-200 point cut on the Nifty could happen. Eventually, you would see a decent upside over the next three-six months time. Q: If that is the case, which are the three-four stocks on the Nifty, that you could pick which could take the Nifty back to maybe 6,000 or even higher? A: At the moment, we think the commodities and the IT space where there is a good amount of buying interest and the momentum is happening. Post TCS numbers, companies like TCS, Wipro and HCL Tech