Market Voice: Subhash C Aggarwal, CMD, SMC Global Securities

'Nifty may revisit the 5,800 level'

Subhash C Aggarwal, CMD, SMC Global Securities, tells Krishna Merchant that investors should wait for the Nifty to correct up to 300 basis points to make fresh investments. Edited excerpts:

The equity markets have been under pressure due to global concerns. Do you see further downside in the near term?
I expect a 200-300 point correction in the Nifty due to profit-booking, which will take the index down to 5,800. Investors can make fresh investments after the minor correction.

I do not see further downside in the long term on the back of robust growth prospectus and good quarterly results. Foreign inflows will also continue.

Industrial output for September was lower-than-forecasted. What is your outlook on capital goods and power sectors?
I am positive on capital goods and power sectors because there is a lot of money coming in. More investment is required in these sectors, then only they’ll perform well.

Do you expect the Indian markets to take a hit if it does restrict the hot money flowing in?
In a recent statement, Montek Singh Ahluwalia said India needed inflows and they would not restrict it. In my view, the government should not restrict the money coming into a developing economy like India.

We still have an appetite to absorb fund flows worth $20 billion without facing any problem.

How do you see the PowerGrid stock panning out when fresh shares come into the secondary market?
I expect the stock to rise to Rs 103-104 once the shares issued during the follow-on offer come into the market.

What is your outlook on the defensive space like pharma, which has been outperforming the benchmark in the past few sessions?
Defensive stocks will lose steam going forward, as they have already outperformed and investors have made money.