Nifty may see 5550; Land Bill won't impact soon: Baliga

Ambareesh Baliga, managing partner-Global Wealth Management, Edelweiss Financial Services says the Land Bill passed by Parliament on Thursday is unlikely to have any immediate impact but will have long-term implications. 

“Real estate companies are not looking for more land bank because most of them already have decent amount of land bank and looking at the slowdown, I do not think any one is looking for expansion immediately because of which I do not see immediate impact. However, in the longer-term, if the economy has to grow, we require more land for industry as well as real estate and that is when we will face problem,” explains Baliga.
Additionally, Baliga says the market bounce back will not last long although Nifty can rally up till 5500-5550. Below is the edited transcript of Baliga's interview to CNBC-TV18. Q: Do you think we have not seen the worst yet and September could also be a difficult month?
A: The market saw a bounce-back with the rupee appreciating a bit. However, I do not think such bounce backs will last too long. The market should not be more than 5,500-5,550, so any decent bounce back like this should be utilised to exit to a large extent because we have a crisis on hand and we have lived in denial for too long.
We have not looked for any solution but we have looked as to whom to blame and that is what has been happening for quite a while. Looking ahead, we see inflation shooting up, input cost going up. We are looking at more of stagflation going ahead. Q: The Land Acquisition Bill is 50 percent passed, do you think it will have immediate stock wise impact, should we understand it as having a bigger impact on any real estate stocks. How should we understand stock market impact?
A: Real estate companies are not looking for more land bank because most of them already have decent amount of land bank and looking at the slowdown, I do not think any one is looking for expansion immediately because of which I do not see immediate impact but yes, in the longer-term, if the economy has to grow, we require more land for industry as well as real estate and that is when we will face that problem. Q: What are the domestic guys doing at this point because the domestic institutions that we have interacted with, indicate that there is some buying that we are seeing especially in spaces like financials etc. Are you noticing any accumulation at lower levels in any of these spaces?
A: No, we are not seeing too much of buying happening at those lower levels. Whatever buying we are seeing is more from a trading point of view. I do not think people are looking at going for long-term investment at this point of time given the volatility and uncertainty. I do not see too much of investment buying right now, it is more of speculative buying.