Sensex rerating only at end of results season: Anand Rathi

Devang Mehta, vice president and head of equity, Anand Rathi Financial Services, joins CNBC-TV18 to opine about earnings season and give his outlook of the market today.

He says that results so far have been a mixed bag. "The Sensex EPS remains unchanged for now and a re-rating is possible only after the big guns such as L&T and Tata Steel too declare their results," he says.
Mehta opines that Reliance has been a drag for a few quarters now, but long-term invesrtors with horizon of one to two years can look into the stock at current levels with a target of Rs 1100. Below is the edited transcript of the interview. Also watch the accompanying video. Q: How have you looked at the result season so far? As a whole have you had to downgrade earnings for the Sensex itself for FY12?
A: This has been a mixed sort of a result season, what we have been seeing so far. Almost half way through the earnings calls, we have seen phases of good results where people were not expecting them. An example is cement companies coming out with great earnings, something like Ultra Tech, ACC and Ambuja. In phases, we can say TCS was decent, Reliance with a so-so set of numbers