Wednesday, March 23, 2011

Crude oil price will remain a key concern: Kotak AMC

The domestic market has become aggressive volatile crude oil prices. In the view of most analysts, India will face charges of hiking oil and inflation numbers at the same time in order to keep the market stable. Alroy Lobo, Chief Strategist and Global Head of Capital Asset Management at Kotak AMC believes that oil prices will weigh on market sentiment and will remain a key concern in oil prices until it does. Besides that, world events have been discounted by the market and consequently, the revenue estimates will be shaved.
Talking about the growth prospects of the specific sector, said it is constructive in the IT sector and outsourcing of services. "IT and outsourcing services should show continued growth in FY12," he adds. He was also optimistic about the growth of the pharmaceutical sector in India.
In addition to being neutral in the banking sector, which is underweight in infrastructure, real estate and capital goods in India. He feels that the inputs were weak due to lack of retail participation, however, see a good level of valuations in the MidCap segment.
Reacting to update the policy interest RBI said, "RBI is likely to hike interest rates from 50 to 75 basis points this year."