Nitin Bhasin of Ambit Capital Had extensive talks with Moneycontrol on issues like equity market, country’s economy, LIC’s IPO. In this conversation, he said that banks (especially private banks) are expected to benefit from higher yields, strength in housing market and recovery in real estate in the post-Corona era of reopening. In the next 12-18 months, there may be a sharp decline in the provisioning by banks to deal with NPAs. Due to which there will be a strong increase in the income of the banks. It is worth noting that Nitin Bhasin has more than 14 years of experience in equity research.
Talking on LIC’s IPO, he said that at present there is a lot of hustle and bustle in Dalal Street regarding LIC’s IPO. LIC enjoys many competitive advantages in India. However, in recent times, some of its market share has been seen going towards private insurance companies. He also said that he would not be surprised to see that the government has earmarked LIC for Rs 19-23 lakh crore for this IPO.
He further said that LIC’s targeted valuation indicates that it will be the largest IPO in terms of market capitalisation.
Talking about the rising crude oil prices coupled with Ukraine-Russia tensions, he said that from mid-2022 onwards, crude oil prices are seeing an increase. In recent days, Russia-Ukraine tensions have led to a further increase in its prices. Predicting crude oil prices is a very difficult task. It is expected that in the coming times, due to decreasing global oil inventory and increasing geopolitical tensions, oil prices will continue to rise.
In view of rising inflation, can the US Fed start raising interest rates soon? Responding to this question, Nitin Bhasin said that there is a high possibility that the US Fed may increase rates from March. This increase in March can be of 25 points.
Will FII sell-off continue in the Indian market? Responding to this question, he said that yes, there is every possibility that FIIs will continue to be net sellers in the first half of the calendar year 2022. The reason for this sell-off is that the equity risk premium in the Indian equity market has become much higher as compared to other emerging markets.
Responding to the question of which sectors and stocks should be watched, Nitin Bhasin said that now interest rates can be seen to increase. In such a situation, if history repeats itself, then we expect banks (especially private banks) to benefit from higher yields, strength in housing market and recovery in real estate in the post-Corona era of reopening. Apart from this, real estate companies should also be looked at from an investment point of view.
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