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Thursday, September 10, 2009

Nifty At 5200 Soon, Bullish On Realty: India Infoline

veer on Thursday, September 10, 2009 |

Nirmal Jain, Chairman and Managing Director at India Infoline said :

The momentum in the market was likely to take the Nifty past 5,000 soon, adding that he had a target of 5,200 for the Nifty. The undertone will remain distinctly positive.

His views on some stocks:

He was bullish on Patel Engineering, Nagarjuna Construction and IRB infra. He also said that DLF and Unitech were seeing good offtakes and added that the realty companies could see record sales.


On Oil India, Jain said the stock was likely to open at Rs 1,200, adding that Oil India was priced better than NHPC.


More over 5,000 is just about 4% away from the current levels. The sheer momentum of the market will not take it cross 5,000. Once it crosses 5,000, 5,200 is not a difficult target. Few things that have changed in the last few weeks are driving this rally. Of course, global liquidity has been very strong and India is also one of the beneficiaries of that but beside that there has been relatively better news on monsoon. Our research team did a survey in six states and many districts and we found that National Rural Employment Guarantee Scheme (NREGS) money has actually reached the lower stratum of the society and that is cushioning the negative impact of poor monsoon. Also, the food grain stocks are adequate. So the negative impact of monsoon is not as much as people feared earlier. The consumption story continues and that coupled with huge investment flow in infrastructure projects are driving the market up. We are also seeing that companies like Unitech and DLF are seeing very good offtake in fact, the sales that they are talking about in this year probably would be record in terms of the area sold. Of course, they are selling at lower price but the good news is that they are able to sell the housing units in the urban areas like Delhi where they are based. So all in all market looks ripe for a good revival and a rally from here. To summarise, driven by global liquidity on one hand and Indian macro fundamentals are relatively better than the rest of the world.

S: MC

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