Sonam Udasi, head of research at IDBI Capital expects India to do well if the global markets stabilise. Moreover, he also told CNBC-TV18 that if the global contagion continues, then India may end up in a 2008 like situation. "From India's perspective, the index levels are dependent on the global markets than India's own problems," he added.
He suggested investors to stay away from the sugar sector. He also said that the risk reward in the near-term will not back the IT space. Here is the edited transcript of his interview. Also watch the accompanying video. Q: Mukesh Ambani made a statement in his speech that he will use the BP alliance to acquire overseas assets, but the KG-D6 gas output will rise from 2014. Would that be a disappointment for the market? Were they expecting more quick results with BP onboard?
A: We were expecting stabilisation till 2013. From our perspective, they are off by only one year. It will make an impact to sentiment in the near-term. From a valuation perspective, most of the negatives from an RIL perspective seemed to be priced in. Q: Is the bottom for the markets in place at around 4,700 levels? What would you advise your high network clients?
A: The valuations across sectors have factored in most of the negatives in terms of high interest rates, growth expectation and NPS coming in. If the global contagion continues, then we may end up in a 2008 situation. Therefore, it makes clients weary. The corporate India, since 2008 till now, has tightened its belt, tried to become more efficient and taken on lesser risks. The valuations are near bottoms. In some cases, there maybe some worries on the metals side. For example, IT has outperformed and can face some pressure as the rupee turns. From India
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