Nilesh Shah of Axis Direct is surprised with the IT giant Infosys' results that kicked off the earnings season. "In an environment like this Infosys have surprised market expectations," he said.
According to Shah, if the company is able to maintain 15-20% of earnings growth next year then it has potential to deliver 15-20% returns on similar PE ratio next year. Shah expects market to be range bound going forward. He expects more disappointment globally. On the home turf, if earnings are below expectations and if rates are hiked then it is unlikely for the market to break on the upside. However, he doesn't see much downside for Nifty from the lows seen in last quarter. But global uncertainty will continue to be bigger threat for the market than macros ahead. Also Read: Market lacks steam to sustain above 5200 says Envision Capital Below is the edited transcript of Nilesh Shah's interview with CNBC-TV18. Also watch the accompanying videos. Q: How would you position yourself in IT? Infosys seems pretty okay for the quarter. A: Infosys has delivered a spectacular numbers. In an environment like this they have surprised market expectations. Rupee depreciation has helped them but they have also faced global headwind. Can there be more challenges ahead in terms of global headwind or not is yet to be seen. But from a pure retail investor point of view the company is available at about 18 times FY12. If it maintains about 15-20% of earnings growth next year which looks possible then it has potential to give another 15-20% return even on similar PE ratio next year. I donDiscover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
