A Trump win may beat mkt down, so load up to buy: Dimensions

He believes NBFCs and information technology space might see consolidations in the near future so it would be good to invest carefully there.Below is the verbatim transcript of Ajay Srivastava’s interview to Latha Venkatesh, Anuj Singhal and Sonia Shenoy on CNBC-TV18.Anuj: Ahead of this huge event of US presidential election do you think this is a buy market or this is a market you would want to avoid for now?A: No, it will be a beautiful opportunity because if Trump wins the first reaction of the so called intelligentsia is going to be the sell out of the market which in our view would be foolish thing to do. So, if Trump wins and market takes a dive you don\\'t need to sell out, you need to sit there and buy. So, you need to keep cash on the sidelines in the eventuality it happens. We are on the side that a Trump mean would in the longer term benefit most of the world compared to what the market is believing it to be. So, we have seen Yellen postponing the increase of rate interest rate etc. But broadly you got to keep your powder ready should a eventuality rise. You shouldn\\'t be fully invested, if an opportunity comes you got to be there to buy, you should not be there to sell if the market tanks on that date.Latha: Let me talk about Tata Group stocks. Will you pick up any, will you roll back some of your investments simply because there is uncertainty looming or whether the chairman continues, whether investments continue, whether debt sell offs continue?A: I am a little biased because I never had a great amount of view towards Tata stocks for a very long time. Some of you are aware of it. Mostly they were short positions but the move is good for the companies. It is a great move for the companies because now you will see growth coming back into the companies. And among the companies that I pick up we have a holding, so I can disclose that we are building up, holding and things like Tata Power because there is a power business and there is a defence business sitting there and that could have a major fill ups. So broadly speaking leave aside all the volatilities of the short term and the good news Ramadorai comes back that is the headline news I saw. Maybe he will come back in what position I don\\'t know but that is a master wealth creator coming back in the system. Things are going to get better and you are going to see an expanding Tata Group, not the contracting selling out that we saw in the last two years.Sonia: You were just saying that you should keep some cash on the sidelines. So, what are you looking to buy if that dip comes through?A: Very odd bunch of stocks, actually very odd bunch of stocks because one which we came into a favour about a couple of months back was an amazing dog of the - 10 year dog I call it - is NTPC. That has turned the corner, the results have been okay so far. That could be one of the stocks and for holding disclosure we are there. Infrastructure partly sounds like power utilities, you would want to go and buy them. If there is a major correction, you want to go buy, sorry to use my favourite liquor stocks, you need to buy those stocks. You need to buy in any dip. A good quality auto stocks are given, if you don\\'t own it, it will give you a chance to own it.The beauty of this market the large yesterday\\'s correction, the day before is - market is giving you opportunity again and again to keep buying good quality stocks at a not so reasonable valuation. That is the trouble part of it, the valuations are stretched, we are at the upper end of the valuation ticker at this point of time. But you need to keep a pod on only one which you don\\'t want to buy, in my view again is nationalised banks also because we are a perpetual short on that stocks so we don\\'t believe there is a great future there. That is one bunch of stocks you don\\'t want to buy.The second bunch of stocks you don\\'t want to buy is fast-moving consumer goods (FMCG) stocks, you don\\'t want to buy that. Third bunch pharma. Leave aside that, other domestic stories are all good including sugar. Sugar is turning back again, it took a right up, it corrected, it is moving back again, so you need to go back to that industry again.Anuj: Two pockets which are doing well today of course one is metals, Hindalco is now the top gainer 2.5 percent higher and the other is tyre stocks, MRF, Apollo Tyres, CEAT have all moved to the morning high point. Any picks in any of these two sectors?A: We have a holding in three out of four stocks you said in the tyre stocks. It sees a great future because few things are happening in the industry. No major capacity expansion taking place. There is a competitive equilibrium there. Nobody is competing hard enough on prices etc and the third most important thing is the growth trajectory is decent enough at this point of time. So, as an industry it doesn\\'t matter what you buy, some people don\\'t want to buy MRF, it is too expensive as a stock per piece. But by and large this industry will give you steady return. Let me mark it, I don\\'t think it will give you above market returns by any standard. It will give you steady return on an average basis and the reason I say this is that in an equilibrium kind of market you seldom see disturbance in terms of volume and price which means that unless the market changes in a very dynamic way and the demand goes up and the street price increase comes around you will not see dramatic moves in the P&L of these companies. So, these are steady performers but my belief is it will be average market performers in the next 12 months.Latha: One of the better performers this year have been Non-Banking Financial Company (NBFCs) stocks. So, even today actually L&T Finance, M&M Financial, Capital First are all up and about. In the drubbing that the markets could get post US elections would there be any of these that you buy, would you buy them any ways?A: You buy them for one reason. And I believe that in the next 18 months there will be a lot of consolidation play in this sector. There are too many players, too many desperate people out there in the market trying to lend money and it is going to be mayhem in the next 18 months. Keep watching these stocks, it is not going to be an easy ride. So, these stocks you are going to carefully buy, who will get sold, who will get bought and you need to be on the side who is the buyer because seller will be the desperate guy, the buyer will be the one with deep pockets. You will see in my belief that in the next 18-24 months the number of players will be about 30-40 percent smaller than what it is today.Sonia: Are you looking at buying into any of the cement stocks now? ACC Limited reported weak numbers but the stock has corrected from Rs 1,700 to Rs 1,400 in three months. Anything from that pocket that catches your eye?A: Cement is - again I say - it is a stock for, I am sorry to use the word, fuddy duddys because that is the way the returns come in the cement business. It is a long drawn, yes you can get good returns, it doesn\\'t excite the palate, it doesn\\'t excite the investor. There is no new story emerging there in the cement business. It is a kind of a portfolio holding you like to have but never actually love to have it. So, I put it in that category.Returns would be I guess the returns would not be much above market returns and therefore if you want to buy cement stocks be ready for a nice decent return, I am not saying they will go down or anything unless the great economic revival story comes out and infrastructure goes into a major spin I don\\'t think demand is growing in any great shakes altogether.Number two is real estate industry, the big consumer. There we are seeing not many new projects. It is more liquidation of old stocks which is happening for the next year to two years. So, I am not sure where the demand will come from given what we see today that it will go extraordinary returns to investors. So, it is a kind of a stock which you like to have, don\\'t want to have kind of stocks.Anuj: What about Infosys, that stocks is at Rs 980 sooner than most people would have thought?A: I have a belief that - again I am saying this out of this thing is that this is a time for consolidation in this industry. Infosys on a standalone basis has now little legs to stand on because you got a promoter on one side, you got a management on the other side, you got indifferent people on the other side and they have been caught in the cleft that their main business requires people which they don\\'t have. That is what my understanding is coming from the IT industry is that the business requires a different set of skills Infosys and other companies don\\'t have this skill.So, my guess is it will kind of trudge around for some time, maybe give us a surprise in a quarter or so because that is what happened but my guess is that ultimately we might be heading towards consolidation in industry and the prime candidate would be Infosys at this point of time because all others have nice pedigreed promoter, the only one which is out in the open is Infosys if you ask me. So, perhaps you would accumulate it at more decent corrections on the basis that some event will happen in this company and you don\\'t know who knows tomorrow an Accenture may come and buy out Infosys or give a very good offer to buy it out who knows but that possibly would be the last bet for Infosys in the longer term and for the investor as well.Latha: Midcaps, they have been stand out performers. We can take our pick. Chemical stocks, paper stocks, sugar stocks, media stocks and some NBFCs as well. Some of them have given 200-300 percent returns as well year-to-date. Generally midcap outperformance is at an end, would you think it is time to book profit?A: I am a firm believer that this year 2017 is the year of the stocks not the market. It is the year of the industries not the midcap, you would see like paper. It is consolidating. Obviously the lead player now is going to become for instance JK Paper. So, you would like to go to industries and players which are becoming market leaders. So, my view is that be very stock specific, there are things playing out, you saw what happened to Syngene. The price shot up dramatically compared to the rest of the pharma industry was trudging along. You would see paper one stock coming up, you would see paper two stocks coming up. The key here is focus on who are the market leaders relatively speaking in the midcap and the larger cap industry. Don\\'t go for an all out and buy and lots of the stocks are very expensive and contrary to what people think you spoke about 100-200 percent returns. What we are encountering is people who have made enormous losses in the last three months because corrections are equally steep as well. It has not been one way ride for the midcap market. So, let us be careful while the overall headline is beautiful performance, the market is riddled with stocks which have given pretty negative returns in the last two months. So, you have got to be careful market leader is the name of the game and that is where you have got to stick your neck out because it is going to be very stock specific market. Even yesterday you saw market was down quite a bit but select stocks held firm and that is the important part.