In an interview to CNBC-TV18, Andrew Holland, CEO - equities, Ambit Capital Pvt Ltd says the recent range that our market has been stuck in can play out if the RBI at least begins the rate cut cycle when it meets in April.
Money will continue to flood our system, according to him. He says that when foreign investors look at the Indian Budget, they are searching for cues on economic growth. With the infrastructure space getting a big leg-up this time around, maybe order flows will be the catalyst which gets the market going up a bit more than what we have been seeing in the last few weeks. Below is an edited transcript of his interview. Watch the accompanying for more. Q: All the events have played out and we are stuck in a bit of a trading range. What is easier to justify fundamentally, some more correction or a move back to those 5,600 kind of levels on the Nifty again?
A: I kind of liked the Budget. I thought it was okay. It keeps domestic consumption ticking along with emphasis on infrastructure investment. When you are looking at what you came into the year looking to buy, then you are nibbling away at the interest rate sensitives and infrastructure, now I think you can go with a little bit more conviction. So that should take the market higher. We could easily get to that 5,500 if we have a rate cut by the RBI which is probably going to happen sooner rather than later.
The one risk coming out is that we have had a very mild winter in the US and in parts of Europe. I don
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