Dip good for buying; set for low interest rate scenario: Oswal

Talking on the upcoming RBI policy, he says going forward we are set for low interest rate scenario with possibility of 25 basis points cut -- maybe in October or December.Below is the verbatim transcript of Motilal Oswal’s interview to Prashant Nair and Ekta Batra on CNBC-TV18. Ekta: There has been quite a steep fall that we have seen and a lot of nervousness that we have seen post the geopolitical tensions yesterday. Your sense, do you think this is a good opportunity to buy and is it right for the markets to be nervous at this point? A: Yes, yesterday we saw good fall because any sudden development happens in the market of course the market really takes some kind of a beating. But with the picture getting clear and the reaction coming from the other side this is really not at all scary. The markets are holding out. From the investors\\' perspective I would say it is a good opportunity to buy at lower levels although in short term you don\\'t know what is going to happen. But medium to long term I would say I feel proud as an Indian the kind of response that we have given to the terrorist, that message will go far long. That shows the courage and commitment and the strength of our country from that perspective. Prashant: I remember speaking with you about 15 days back and you sounded very confident, bullish. But yesterday's fall does it also expose some chinks in the armour in that sense? What is the market structure right now like, how is positioning, what is leverage in the system, just run us through some of the details? A: When you see some kind of serious development happening it was like a small war kind of situation yesterday in the market. Because suddenly the information just came in and at that point of time you see the buyers completely withdraw and with smaller volumes you can see some sort of correction. So, it happens especially when the markets have gone up in the past couple of months and always small and midcap will always be more volatile than the large cap. That is the nature of the market. The stock market in short term always will remain volatile. Prashant: You are holding this conference, you have some 600 partners coming to that conference. So, you have this bird's eye view across franchises of Motilal Oswal. What is really the retail leverage in the system, could you give us some idea about that, how leveraged is this market? A: It is not very high leverage from the investor perspective because we always encourage long term buying for deliveries. So, in our distributor, in our franchises and sub-brokers the buying levels are not high and leverage positions are very less. I can see the enthusiasm coming from across the country, we have people coming from 100 cities and they are sitting here and listening to all the kind of sessions without any concern in their mind because the small entrepreneurs always have limited bandwidth to handle this kind of developments in the market but I don't see any kind of sign or worry as far as they are concerned. Ekta: What is your expectation from the RBI this time, the new policy itself, the commentary as well as maybe what the markets factored in from it already? A: I would say that there is a good possibility for a 25 bps cut and it doesn't matter whether it comes now or in December but we are definitely set for lower interest rate scenario. All the indicators since the last cut are far more favourable than when it was last. So, I am quite hopeful.