The Sensex will hold on to the 20,000 mark by year end, if the market momentum continues - that's the word from ICICI Securities, MD and CEO Madhabi Puri Buch.
Below is a verbatim transcript of the interview. Also watch the accompanying video.
Q: What seems to be rallying the markets right now? Will we reach new highs?
A: Markets at present have a lot of momentum. At the start of this year we had said that our belief is that the right levels for the market at the end of this year would be around 19,750-20,000 mark. We believe that the earnings that we expect to see by the end of the year would indeed sustain that on a fundamental basis.
The rest of it is largely liquidity driven. While we are happy about it, we are of the view that retail investors in particular have been patient over many years and it may not be a bad idea for them to do a bit of profit booking at the moment.
Then depending on when a temporary correction comes or a temporary blip comes into the market for them to enter again. Part profit booking is something that we are not uncomfortable recommending at the moment.
Q: We have seen a mix bag of results coming in as far as the IPOs are concerned. With the kind of IPOs lined up especially Coal India for instance, do you think the liquidity will be sucked up by an IPO like Coal India?
A: Certainly, an IPO of such a large size will have some impact on the market both in terms of the primary market and the secondary market. As bankers we are recommending to our clients that waiting a bit until after the Coal India issue is over is well advised.
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