See Nifty base around 8500; upbeat on SBI: Deven Choksey

With the AAP destined to win the Delhi assembly elections according to the newsflow, it could have some immediate reaction on market but post that the market would shift its attention to the upcoming Budget, says Deven Choksey, MD, KR Choksey Shares and Securities.For the Nifty per se, he thinks 8500 is a good base and does not expect it to go down much further. However, in case it does then it would not be more than a couple of hundred points, he addsSector specific, the house is upbeat on some of the NBFCs, some infra plays including port and power generation and also some banking stocks and consumptions names like autos as preferred spaces.With regards to Larsen and Toubro that is likely to post its quarterly numbers today, he says if it corrects then it would be an opportunity to add it to the portfolio. The results are likely to be better when compared to last year and revenue performance might come in double digits with profits being slightly better. He is also upbeat on SBI from the PSB space and HDFC Bank and IndusInd Bank from the private space.Talking about the media stocks he says the house has coverage on Network 18 and TV18 and would stick to that.

Below is the transcript of Deven Choksey’s interview with Latha Venkatesh & Sonia Shenoy on CNBC-TV18.Latha: Aam Aadmi Party (AAP) victory is almost given is this the kind of a negativity you will see in the markets or do you think the markets will lose more steam as the results are seen as the first challenge to the BJP?A: The possible victory of AAP may have some amount of immediate reactions as far as the market is concerned because some nervousness would come in. If you and the market start analysing this particular aspect if one looks into in, Delhi there are three powers center the center, the state and the municipality. With the center so active in Delhi the state has relatively less role to play.At the same time the municipality would have a larger hold because of implementation of some of the initiatives. So to a greater extent this particular subject is known to the market may be at some point of time it would be realised. The pressure would get shifted to AAP because they have committed for lot of freebies so obviously that is an area which would be center of attraction thereafter.

However, my reading says that after the results are out for the Delhi elections, the market would be more looking towards the Budget, and the Budget related proposals coming out from that side.Sonia: Lets us talk about some stocks now? Apollo Tyres is getting thrashed today; it is down 15 percent after its weak numbers. What would you do with that name now?A: Not sure what would I do with that stock because there are many other companies which are available in the market where the fundamentals are far more convincing, the prospects are far more convincing and better looking be it in the non banking financial companies (NBFC) space, be it in infrastructure or in some other consumption space where the companies are looking much better. One should properly plan and consider these quality stocks in this corrective downside of the market. Latha: Sun TV delivered a good set of numbers, up 15 percent the profit that is. The stock is up 7 percent would you do anything with that stock?A: Not really, in the media space we have the coverage largely on the Netwrok 18 and TV 18 so would stick to those companies.

Sonia: Just one word on expectations from Larsen and Toubro (L&T) and what you would be doing with that stock?A: It is an opportunity according to me to consider this stock in the portfolio should the market yield corrective downside in this particular company. From the expectation point of view the results are likely to be, on a year-on-year basis better as far as the profit performance is concerned. The revenue performance might remain in the double digit close to double digit but profit performance might be much smarter with the expansion in the margins coming up. At the same time with the new order book positions and the new inflow of order would probably drive the market momentum. Since this stock is under correction it is an opportunity at lower levels to buy in the portfolio.