Mkt fall a transient phase, opportunity to buy: Dilip Bhat

Speaking straight from the dealing room Dilip Bhat, Joint MD, Prabhudas Liladher told CNBC-TV18’s Mangalam Maloo that it looks like investor confidence has been rattled and selling could continue but this is only an aberration and a opportunity to buy on dips.These type of events happen every year for a couple of times and the entire market gets routed but if you look at India in specific, there is not much downward scope from these levels," said Bhat.Below is the transcript of Dilip Bhat’s interview with Mangalam Maloo on CNBC-TV18.Q: Can you give me a sense where yesterday, we saw a big sell figure from the foreign institutional investors (FII) which was also matched by a fairly big buy figure from the domestic investors? So, is there any redemption pressure that you are facing from the mutual funds? Sitting here in the dealing room, what is the sense that you are making?A: It is a bit too early for us to talk about the mutual fund redemption at the moment, because over the last couple of months, we have seen the confidence of the retail investors really gradually building up in a serious way. But these kinds of events do rattle investor confidence and certainly, you will find some doubts coming in their minds. However, at the moment, the inflows continue to be pretty strong and the buying continues to be pretty aggressive.Q: So, do you expect this rout that we are seeing in the markets to be a good time for value picking as far as retail and institutional investors are concerned or is it a falling knife?A: These type of events happen every year for a couple of times and the entire market gets routed  but if you look at India in specific, there is not much downward scope from these levels. Certainly, there is a bottom over there. However, when events happen, it s a question of the confidence and that is where the slipping of the index happens. But, surely for the long-term investors, we still feel that this would be the time when they can really think about doing fishing and get into some very good fundamentally strong stocks.Q: Today, there was a bit of a pause but every rally or every move upwards have been sold into. What is the sense that you are getting sitting here in the dealing room? Is it that FIIs are selling, is it the domestic investors selling or are retail guys who are trying to get into it or is it the institutional guys who are again looking at bottom-picking as you said?A: So, I must say, all of that what you said is happening in bits and parts. For the retail investors, particularly the small investors, who must have really spread themselves, for them it is a margin call which is coming or they have to fund it. So, that is where the vulnerability comes. As far as the institutional investors are concerned, they are both buying as well as selling at the moment. Overall, the sense that we are getting is the way the markets are moving, it is a question of crisis of confidence which is emerging which we feel is kind of an aberration and that this is a transient kind of a phase.Q: So, when do you see this transient phase to go fall by the way-side?A: At the moment there are international events over which nobody has a hold and people are trying to understand what exactly is happening. Market is trying to tell us something more important that something decisive is happening in the world and which is making people nervous. But if one were to compare it and put it in perspective, the Indian context, then it looks a lot better that India does not have much scope for it to go down.Q: Could you give me a sense of where the bottom of this market would be?A: It is not an easy question to answer looking at the crisis of confidence which I just mentioned, but if Nifty goes down a couple of 100-points, which is not impossible to imagine because these are times when the panic takes over the logic and nothing else really matters. So, in this panic it is very difficult to rationalise things. Therefore, a couple of 100 points down on the Nifty is possible but that also I would think is an event to buy.