See value in banking, infra overpriced: Quantum AMC

In an exclusive interview with CNBC-TV18, IV Subramanium of Quantum AMC shares his market outlook for 2011. He sees large headwinds, largely, from liquidity, in terms of interest rates moving up. He also expects Inflation to be high and oil prices to be the big issues this year.

He is positive on the banking and consumer discretionary space. "I see value in the banking sector which we have been declining very sharply for the past few days. There could be some banks which I will like at these prices and if it declines I would only add on to them," he explains. He also finds infrastructure to be overpriced. "I would definitely like to buy it at a much lower price than where it is currently," he adds. Below is a verbatim transcript of IV Subramanium's interview with CNBC-TV18's Latha Venkatesh and Anuj Singhal. Also watch the accompanying video. Q: What is your call for the market in 2011? We have a seen decent year last year with some of the individual stocks giving great returns. What is your sense of 2011? A: I see some headwinds, largely, from liquidity, in terms of interest rates moving up, inflation numbers to be high and oil to be big issues this year. All these can have a significant impact on trade deficit which is back to the peak levels of around 9% of the GDP which is quite significant.  However, on the positive side if the global economy picks up then exports from India should also do well and that can address the deficits that we face to some extent. Along with the commodity prices and the labour cost is also likely move up for most of companies. The near-term margins look like they will shrink or there could be some impact over there. However, these are cyclical issues; I don