Mkts more attractively priced after correction

Manishi Raychaudhuri, MD & Head-Research at BNP Paribas Securities India said that markets are more attractively priced after the correction. The markets are trading around 15.3x forward earnings. He sees significant entry opportunities in the market and said that he would look at selectively buying at current levels. He said that FY10 Sensex EPS is seen at Rs 870 and FY11 EPS is seen at Rs 1110.

He further said that he is neutral on telecom, as the sector is hurt by pricing. Bharti Airtel is the only stock he holds in the portfolio. He is underweight on global energy & metals. He has neutral stand on cement. He said that frontline cement companies are at discount to replacement cost. He has given neutral recommendation on Suzlon Energy as there are concerns on order shrinkage. He is overweight on banks, infra and auto in portfolio. He feels that the valuation advantage has been provided by PSU banks in the sector. Auto stocks have underperformed for the last 1 month.

He sees opportunities in rural focused infra companies. In Auto space, Maruti, Bajaj Auto & M&M are showing good buying opportunity. He is underweight on real estate, as the results were disappointed. He feels that equity issuances will dampen the real estate valuations. He is neutral on Indiabulls Realty, and sees target of Rs 204 for the stock.

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