Mkts to see few more rallies before consolidating: PN Vijay

Q: Do you see the market stabilising around these kinds of levels at slightly higher levels than here or slightly lower levels than here?

A: We rally up a bit because of the slue of measures the government has been announcing and probably big rate cuts by PSU banks in the next one-two days. But after that we may relax a bit because we sprinted about 35% odd.

The rupee seems to be recovering against the dollar. We gained about Rs 1.5 to Rs 2 last few days and inflation and interest rates are heading soft. The jury is still out but if one took the view that India is limping back we will probably have a terrible Q3. However, Q4 onwards India Inc should do well then I think we would consolidate and not crash down. I see a few more good days and then hang around for a while.  

Q: Yesterday the big bounces were in many rate sensitive sectors especially something like infrastructure. Would you give that a bit more by way of a bounce?

A: The Infrastructure sector has surprised me on the upside. L&T came with an impressive increase in order book. IVRCL was the stunner; nobody expected that company to bounce so there is good news on the infrastructure and construction space. The problem sectors would be automobiles and real estate. These two have been hit the hardest and one should be careful.

Q: If there is a bit more to go to this pullback rally would you use it as an opportunity to exit particular spaces or particular stocks?