FII inflows to improve: Paresh Bhagat

Paresh Bhagat, chairman and managing director, Mangal Keshav Securities talks to Rex Cano on the markets outlook post budget, likely FII inflows and retail participation in forthcoming IPOs.

The markets have rallied after the Budget, what's the outlook for the next three months, and particular targets?

We continue to be bullish about the market. I do believe the Nifty can reach a level of 5200 by March end. Beyond that—in April -- several factors such as the current quarter's results and global developments will play a role in setting the direction of the markets.

We have seen autos, financial and core infrastructure stocks rally. What's your outlook on each of these sectors?

Auto stocks have run up substantially after the Budget. They have already reached a level where the upside is limited. The sales numbers of automobiles are already at a high level. Now the scope for growth seems limited. We are very bullish on financials as well as infrastructure stocks – particularly capital goods companies. The Budget belongs to the common man. He is going to save some of his money and spend some. Both ways banks can benefit greatly. On the capital goods front we expect companies like BHEL to benefit from the thrust on power sector.

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