RBS sees Nifty at 5800 by Dec, bets on rate sensitives

Indian market, though bruised by global crisis, has somehow managed to tread along with reasonable gains (Diwali week). This may be the reason why experts feel that it still has enough steam for a rally.

Parul J Saini, Executive Director, RBS Asia Securities thinks that the Nifty may touch 5800 by December. In an interview to CNBC-TV18, he said, "We still have a target of around 5,800 on the Nifty so that's around 8-9% up from here. So we do think we could get a bit more than 3-4% upside from here." Saini explains that a lot of the negatives seem to be priced in and seasonally November and December have been quite strong months for Indian equity market. He is also expecting a cut in interest in the first quarter of FY13 as there is high probability of inflation coming below 6%. However, there are concerns too that may plague the market. According to Saini, cut in earnings estimate is expected in FY13. On the global market front, he feels that macro concerns can shift to US from Europe. As an investment strategy, Saini is overweight on interest rate sensitives. He likes Canara Bank, Maruti and L&T. Saini finds GMR Infra attractive at current levels. However, he is still underweight on real estate sector. Also read: See Nifty in 5200-5500 range for few days, says Udayan Below is the edited transcript of his interview with Udayan Mukherjee and Mitali Mukherjee. Also watch the accompanying videos. Q: You are a bit bullish going into the end of the year. We have had a meaningful pullback of about 10-12% from the recent lows. Would you give it much more or would you say things are capped maybe 2-3% from here? A: I would say probably a bit more than that. We still have a price target of around 5,800 on the Nifty, that