Market voice: Rajesh Jain, Religare Securities Limited

'We are bullish on the telecom sector'

Rajesh Jain, executive vice-president & head, Retail Research, Religare Securities Limited, tells Priya Kansara Pandya that strong economic growth has protected the domestic equity market from global uncertainties. Edited excerpts:

Global events in the Eurozone and China have not affected the domestic equity markets? Do you see that continuing?
India has not been impacted due to strong economic growth and domestically-funded fiscal deficit. The rate at which the gross domestic product (GDP) is growing, we are in better times. However, Indian markets may get impacted indirectly on poor inflows.

The GDP growth in the September quarter has come strong at 8.9 per cent, but inflation also seems to be stubborn. What is your outlook on the same?
The momentum of growth is likely to continue, with faster pace in the manufacturing sector and improved performance of agricultural sector. I agree inflation is a major hurdle and definitely a sign of worry. But, growth and inflation are two sides of a coin and need to be balanced.

The Reserve Bank of India is taking necessary steps. I think inflation will be under control once prices of essential goods come down.

How should one look at the fertiliser pack, which have been buzzing of late?
Fertiliser stocks have shown a stupendous performance in the last few months on the news of decontrol of urea prices. The assigned team of group of ministers will soon be meeting to consider the decontrol.

There are expectations that the government will reimburse the losses incurred by fertiliser companies due to fertiliser bonds.

What is your view on the telecom stocks?
We are bullish on the sector and maintain a buy, as most of the negative news flow is behind now. Rates are stabilising, opportunity on data revenues is not being factored in and above all, valuations are cheap.