Sandip Sabharwal of asksandipsabharwal.com is very skeptical of the market for the first few months of 2015. According to him the market is likely to enter a difficult phase. The upcoming earnings season could be one of the worst in past several years and some of the global headwinds with regards to liquidity also remain, feels Sabharwal.
Sector specific, he thinks telecom could outperform once the auction process is over but It and captial goods could report muted third quarter earnings. Some midcap stocks could be good bets for 2015.
Below is the verbatim transcript of Sandip Sabharwal's interview with CNBC-TV18:
The good 2015 bets will come more from the midcap side and those will be more of specific stories which will gain out of what they are doing. In the largecap space it is very difficult to see value at this stage. Normally we see that earning upgrades cycle follow market upmoves but this time we have seen the earnings downgrades follow the market upmove, so it is slightly a difficult scenario today.
Among the stock which we have lately looked at is a company in the education space. A smallcap midcap kind of company called Career Point. That company went into some problem because of the change in format of the examinations three years back. However, it is now on a come back trial. Management is pretty focused, it is a clean management and that is one company which we see as a turnaround company. Some other education companies have done much better and their market cap has gone up substantially, so that is a one stock which we are looking at as a good play going forward.
The other stock which has been one of the stock which will do well and it is something I have been talking about for the last three four months has been Sintex Industries, which is a company on a turnaround path and their most of the FCCBs conversion will get through over the next couple of months. Once that happens we will see an upward moment in the stock price. So these are the kind of specific stocks one would be looking at buying into on every correction because right now I am not buying anything because January could be again be a tough month for the markets.
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