Here is why SP Tulsian continues to be positive on market

Despite the recent fall in market, SP Tulsian of sptulsian.com maintains his positive stance on back of expectation of a good Budget. "In my view, you will be going to see extreme positive announcements coming in -whether call on the income tax rate slabs or maybe the sops to the rural infra and all sort of things," he told CNBC-TV18. Tulsian believes that all cement stocks have bottomed out. Below is the verbatim transcript of SP Tulsian’s interview to Latha Venkatesh and Sonia Shenoy on CNBC-TV18.Latha: The observations for Divis Laboratories, where does that put the stock in your opinion?A: Things are looking bad for Divis and for the simple reason that if you take a pharmaceutical call, this has always remained a non-controversial stock and the kind of faith people had on this stock with the institutional holdings and all that. So, when you get to hear this type of news, definitely that is a shocker. However, the kind of erosion or the fall which I have seen in the stock price, sometimes maybe indicates that things are not very comfortable at the company’s end and that may create more trouble. Since I am not closely tracking the stock it is difficult for me to comment much on the or maybe on a minute basis but I think things are looking murkier for the company.Latha: You have been a little more bullish about the markets and the impact of demonetisation itself. Are you using this steady pace that this market has seen or this gentle decline for adding to any positions?A: For the last couple of days I have been saying that market has bottomed out. Yesterday, when market fell by about 100 points on the Nifty that was a very rude shock to me as well. But I have not changed my view. In the afternoon show yesterday also I had said that yes, take a selective call and go with investments horizon. I am holding very positive view on the January series or maybe for the month of January because if you won't see the Budget expectations which is going to be an excellent Budget. People have not yet started speculating what all we can see in the Budget which in my view you will be going to see extreme positive announcements coming in whether call on the income tax rate slabs or maybe the sops to the rural infra and all sort of things. So, I am keeping my positive stance and the only point which I have been highlighting and which I have been narrating for the last couple of days is that you just need a couple of hours or maybe couple of days view to get changed. The case in point in the sugar stocks.If you see for the last whole week today we are at the last day of the week if you plot the chart for Monday to Thursday you will find that all the sugar stocks have corrected by a couple of percent on every day. They have corrected by about 6-8 percent in this week for the first four days and today you see all of them rising for about 10-12 percent or maybe as high as 15 percent also. So, what my point is that the change of sentiment which we have been talking of either of the week or of the fragile nature can get changed in couple of days as well and that is what my premise of taking the positive view on the market going ahead for the whole month of January as well.Latha: Does this stock interest you; have you taken a look at Cipla lately? A: I won’t be taking a call on Cipla because the choice amongst the pharmaceutical stocks, Cipla is placed on the lower maybe on the pecking order. I will rather go with the Aurobindo Pharmaceutical kind of stocks as against Cipla. Sonia: The other pocket that has really tanked today is cement. Dalmia Bharat Cement is down almost 6 percent, Heidelberg Cement is down about 4-5 percent odd and a couple of other heavyweights as well have been under pressure. How do you approach the cement space now, we have seen some of these non-index cement stocks correct almost about 15-20 percent over the last couple of months. What do you do here? A: In my view, I think all the cement stocks seem to have bottomed out. We will have worry on the Q3 numbers which will get reflected in the Q3 results. However, that seems to have got largely factored in by the market and now if you want to start, one can either start looking for the bigger one like Ultratech Cement and Ramco Cement kind of stocks or go for the smaller players who have a significant presence in the Southern markets. So, these two can be the theme but I think that all the cement stocks seems to have bottomed out.