 Krishna Kumar Karwa, MD, Emkay Share & Stockbrokers, said the markets would remain positive on local support in the face on an onslaught of negative news. "For the next few days, the markets will remain positive till the listing of Reliance Power."
He feels that investors should re-evaluate their portfolios and take money off the table.
Excerpts from CNBC-TV18's exclusive interview with Krishna Kumar Karwa:
Q: How are you feeling global weakness on one hand and tremendous local momentum on the other? How do you think things will pan out from here?
A: Its local versus global and there is so much local euphoria versus global cues, which are not at all positive. Investors need to control their greed now and that’s the key thing that we need to take of. As far as the markets are concerned local factors maybe able to support the market for some more time in the face of the overseas onslaught and we maybe able to close the markets in the next two-three days on a stable note.
But slightly longer-term till the IPO of Reliance Power things are going to be positive till listing etc. but investors need to now evaluate their portfolios and understand their risk appetite and take some off the table rather than getting taken in by the momentum. That’s what we think should be the way to move forward.
Q: What’s a good tactical approach to the market right now. Would you advice your clients to increase their cash positions or just remain invested through earnings and perhaps right up till the Budget?
A: I think the tactical approach should be the way the markets are euphoric markets, investors should be valuing their portfolio on a regular basis maybe weekly basis and arrive at their risk appetite and whatever excess gain that they are seeing on their portfolio that should be converted into cash rather than just allowing paper profits and paper valuations to go beyond their risk appetite its better to have some money off the table and into the bank that’s the strategy I would be recommending to clients as such.
So continuous evaluation of portfolios and coming out of weaker stocks where one is not very clear about the fundamentals etc rather than following and getting into each and every stock which is been recommended. That’s the strategy that investors should be adopting and that’s what we are recommending.
Q: What’s the call on Reliance Power?
A: Reliance Power, if one looks at the gray market premium, a lot of momentum investing and the IPO will obviously going to be a very successful IPO. But the point is that we have NTPC at Rs 2,25,000 cr marketcap and with 27,000 mega watts capacity versus that including the gray market prices. Now Reliance Power is also expecting to have a listing market cap of Rs 2,,25,000 crore and they will be probably adding 25,000 mega watts capacity in the next 5-7 years as such.
So I believe that lot of investing will happen in NTPC if Reliance Power valuations sustain. So for listing gains everybody is applying and long-term everything is good but at current prices, I think there is lot of profit taking on listing.
Source : CNBC-TV18Labels: Emkay Share and Stockbrokers, IPO, Krishna Kumar Karwa, MD, Mkts to remain positive till Rel Power listing, Reliance Power, Reliance Power IPO |
