share market: Very little scope for disappointment as we get closer to Budget: Nitin Raheja

It looks like we are in a standstill mode as we count down to the Budget. The euphoria that we were seeing last week definitely seems to be cooling off. Markets are possibly realising that big bang reforms are unlikely. What is your view?
It is pretty intriguing. The last few sessions have seen some amount of cooling off but for the month as a whole, so far January has been a very good month. You do not see that optically as far as the Nifty50 is concerned. But if you look at the midcap index, they are all up 5-6% and you can see that happening across stocks.

In that sense, this has been a very good month running up to the Budget with midcaps and the broader market bouncing back. For a change, the top names are taking a breather after the torrid run in the whole of last year. It has not been a really bad month. I would be a little cautious going into the Budget because there is so much expectation. It is being looked at as that one panacea for all our problems.

The market has also had a good run up. I would be a little cautious as we get into the Budget. I would even think that things like the expectation of long term capital gains tax and other measures for real estate are already being factored in. There is very little scope for disappointment as we get closer to the Budget.

Maruti’s quarterly performance has been a miss on pretty much all parameters. The volume growth has come in at 4.37 lakh units, revenues a higher by just about 5%, the higher depreciation expenses as well as the higher sales promotion seems to have eaten in this time. How are you looking at Maruti’s Q3 report card?

One should not be really surprised because volume numbers are out in public domain almost month on month. Considering the kind of inventory and sales, it is really not surprising what Maruti has delivered. You have seen a very muted response as far as the stock is concerned.

Most of the negatives are already there as far as the stock is concerned. Simultaneously, you have also seen the probable talk about the first month where you are going to see a halt in the declining trend. The stocks have already reflected that and they have bottomed out much earlier.

How would you say the situation is currently within the telecom sphere? Would you venture out and join the bandwagon when it comes to picking up a Bharti Airtel or would you remain circumspect on the telecom space as a whole?
We would avoid the whole pack as such although there is this talk of consolidation and finally two or three players being around. The point is this sector has been stumbling from crisis to crisis. Even if you get a relief from the Supreme Court or some time to pay the AGR dues, there are the 5G auctions. That is an options choice for most of these guys.