Sunday, September 16, 2007

Kotak Securities: Sensex band seen at 14250-16750 over next 12 months; May not have seen end of subprime crisis

Sanjeev Prasad, Head Research of Kotak Securities says that there is not much upside seen from the current level for the markets and it can be seen in a band of 14250-16750 over the next 12 months. He believes that the US subprime problems are not over yet. In India he says that the political instability is likely to keep the markets under pressure. It may also impact the telecom, oil and gas policies.

Speaking on the sectors, Prasad says that we may not have seen the end of problems in real estate. They have a positive view on the infrastructure space, but says that the FMCG space may not report good numbers. The Indian IT sector is also likely to continue underperforming.

On media, Prasad says that they are not excited by it and the CAS rollout has been ineffective. Zee EPS is seen at Rs 11.50 for FY 09 and the stock looks expensive at these levels. On cement, he mentioned that the cement capacity utilisation will decline in FY09-10 and prices may come off. They are looking at 32 mt of new cement capacities in FY09 & FY10 each.

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