Like autos, private banks; shun JSPL, DLF: Dipan Mehta

Below is the verbatim transcript of interview of Dipan Mehta’s with Ekta Batra and Anuj Singhal on CNBC-TV18.

Anuj: It is a good start to the new Samvat. We had the Nifty closing above 8,000, today it is maintaining that and seen quite a bit of rally in banks this month. What’s your sense is the market going back to all time highs and is it time to get back in the market full time or would you wait for some correction before putting fresh money?

A: We were waiting for a correction but that’s not happening and after touching a low of 7,700 there about again the market is up 300 from its last low. So one would have to conclude that we are still in a sideways kind of a zone. While the markets are particularly going now where we are seen the earnings catch up and that’s always positive because what we are observing is that lot of the price to earnings (PE) multiples are getting compressed more because of earnings growth rather than stock prices correcting which is always positive in a bull market.

Particularly talking about the banks clearly the banks are having very good earning season after a two-three kind of lack luster earning seasons. We are seeing the private sector banks some of the non-bank financial companies (NBFCs), housing finance companies even some of the other finance companies engaged in infrastructure are coming out with decent set of numbers. What helps them is also a fact that expectations were running low as also the fact that last year the base effect was on the lower side so whatever the reasons by and large banks are in focus again.