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Anmol Sekhri, Fund Manager, Bonanza Group of Companies feels that it’s time to enter the market in a steady way. He feels the worst in over for the Indian markets and all the bad news is already factored in. Sekhri said that there are very good opportunities in the midcap space. “Some of these are not linked to the international markets and hence, they are safe and secure,” he explained

Among his preferred picks are Sesa Goa, Patel Engineering, ICSA, CMC and Prithvi Information.

Excerpts of CNBC-TV18’s exclusive interview with Anmol Sekhri:

Q: Give us an idea of what is the call that you are giving your clients on this market, especially the midcap space?

A: We do feel that it’s time to enter the market in a steady way. I personally feel that the worst is over for the Indian market and all the bad news is already factored in. From here you can only have positives.

The market may go down for short time but I think in the midcap space there are very good opportunities right now, some of which are not linked to the international markets and hence, they are safe and secure. Some of these could be like Sesa Goa where the demand is more than the supply, it’s already 100% booked and in the next year it will sell the same amount or maybe more quantity at a higher price by about 50-60%.

Similarly you could have infrastructure story which is still intact irrespective of what happens internationally. For example Patel Engineering, there is nothing that has gone wrong with it and it’s already booked for next two or three years. It has realty bonanza coming up because they are developing their real estate across the nation. They have fallen substantially almost about 30-35% with the markets, but their earnings are going to be much better. That could be another buy.

Q: Are you buying right now or are you still waiting for the market to cool off a bit more?

A: I think we are ready to buy and as we go along as closer to April, and after April, I do feel there would be a consolidation.

Q: How much cash are you sitting on?

A: About 30%.

Q: The sectors that you are mentioning, does technology find any room there? Do you believe that sector has bottom down and will it be the front liners or would you select midcaps?

A: Technology has many facets to it. On the one hand you have people like Infosys, Wipro etc and there is another technology sector, which is not linked to international happenings for example ICSA. It’s a midcap company which is more into supplying software for power industries in India. It has fallen tremendously and nothing has gone wrong with it because of international happenings. So that could be one.

You could also look at something like CMC which is into training and whatever export is cancelled by their imports, so the net fact would be positive for them. One could also take a contra call, something like Prithvi Information which is just a duplication of Infosys or Wipro, but it discounted at the current levels by hardly Rs 2. The company has an excellent track record and is well managed.

Disclosure: Yes, we have holdings in all of these and our clients would have.

Source: Moneycontrol.com