Nifty to hit 9K before it hits 7k: Morgan Stanley

Reporting NSE Closing Bell live from the 17 th Morgan Stanley Annual India Conference CNBC-TV18’s Sonia Shenoy and Nimesh Shah spoke to Sanjay Shah, Co-Country Head & Co-Head, Indian Equity Business and Ridham Desai, Hd-India Equity Research & Strategy on the way ahead for the market, the policy actions and economy as a whole.Sanjay Shah clearly believes that one need not be too worried about market fall and should jump into the market lock, stock and barrel.After yesterday's relief rally the bulls were in for a rude shock today. The bears were on the attack and major indices ended at the day at their lowest level in 8 months.The Nifty tanked below the 8,000 mark with cuts of nearly 2%. The last time we saw these levels was in october last year. Sensex crashed nearly 470 points - no sector was spared and all the major sectoral indices ended in the red.According to Sanjay Shah 8000 on the Nifty is just a number and market going below that should not be a big worry. It is a right time to buy market. He is confident that Nifty will hit 9000 before it hits the 7000 mark.Speaking about the conference and apprehensions of investors, Shah says pick up in investment cycle was the single most fear worrying them but were comforted by the speakers at the conference like the Railway Minister, the coal secretary and large corporates who confirmed that things are picking up on the economic front. However, the markets might take some time to realise this fact, thinks Shah.According to him three aspects of the investment cycle that will pick up soon spending by railways, defence spending and some of the state owned non banking enterprises that have  earnestly started on capital expenditure programmes. In the last few months government has taken steps that would surely help the economy in the medium to long-term, says Shah.

Sanjay believes the market is close to a bottom and says Modinomics is slowly turning into Modi momentum although the market has not yet realised it. According to him the government has not taken the easy way out they are in fact trying to tackle the deep structural issues which ail India.Answer a query on when he sees recovery in earnings cycle; he thinks it would be after a quarter or two but definitely before end of the year.Ridham Desai too is very upbeat on the government policies and the economy. According to him the government brought down expenditure levels in order to meet the fiscal targets and exceeded that although it cost the economy a lot; it was obviously conscience on the part of the government. But that is feeding into cement sales, into steel sales, into almost everything in the macro. However, that is turning because now we are in new fiscal year and fiscal expenditure is picking up. For that reason it is fair to believe that you go one quarter out and a lot of this data will start looking better, he adds.

Sanjay Shah says one should look for buying companies with strong balance sheet. “You buy growth, you buy quality, you buy strong balance sheet in India,” he adds. The house is interested in spaces like private banks, consumer discretionary space, pharma, IT and think even the capital goods companies are proxies to investments, says Shah.Ending the discussion on an optimistic note, Desai says,” It is time to take your shopping bags out and go buy stocks.”for the entire conversation listen in to the videos