D D Sharma, Sr.Vice President- research at Anand Rathi Securities, believes that till the markets move above the 10,500 levels they will be prone to selling pressures. He further adds that Reliance Industries is a fantastic story for long-term investors.
Excerpts with CNBC-TV18's exclusive interview with DD Sharma:
We are seeing the markets in a finer shape than we had seen in the morning, is it essentially an impact of what's happened on the F&O side? Some positive cues from Asian Indices?
Since yesterday there was a sharp fall in the markets, so I think that the markets could recover a bit today and make the loss positive. But this doesn't mean that the market trend has changed.
So till the market moves above 10,500 levels, it may be prone to selling pressures.
Your take on Reliance Industries and how are you reading into their expansion plans? What are your targets on it?
The retail plan of Reliance Industries is quite fantastic and I think it is a long-term story because retail is the future. They are taking massive investments into the retail sector and they will be present across the full range of retail. Also they will be present right from the beginning; from agri-products, to agri-processing to the full network of 1500
Going by the Reliance track record, I think they will succeed in this venture as well. If they do succeed, there is no looking back for Reliance; and for long-term investors this is a fantastic story.
What are you views on the metal pack, both ferrous as well as non-ferrous?
As far as the ferrous metals are concerned the demand for steel at least in the Asian region is going to be very strong in the coming years. As far as developed countries are concerned the demand there will be not be high but rather it may be slack. So players focused on the Asian sector should experience good demand, their future looks better.
What is your rating on banking space both PSU and private sector banks?
Whenever the interest rate goes up for the short-term, there definitely will be pressure on the net margins because the banks cannot instantly get low cost funds.
They cannot increase the rate on lending immediately but as time passes they can pass it on because the demand for credit is strong at 20-25% in our economy.
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