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‘Focus on media, logistics, oil gas now; like RIL, TCI’

There are is a left out feeling amongst some investors, said Sanjay Dutt, Director at Quantum Securities, adding that regulatory issues are becoming stumbling block for retail participation, which must be ironed out to reduce volatility.

According to Dutt, investors must now focus on sectors like media, oil & gas and logistics. He expects oil and gas to be the next big sectoral leader and sees private oil marketing companies and Reliance Industries  as beneficiaries to diesel deregulation. Quantum recommends a buy on Reliance.

Bullish on integrated media play, Quantum sees broad media companies to benefit from the uptick in economy. Dutt feels investors now must take a look at transportation and logistics sector and recommends TCI . He likes Info Edge  in the e-commerce space.

Below is the transcript of Sanjay Dutt’s interview with Latha Venkatesh & Sonia Shenoy on CNBC-TV18.

Latha: How does Samavat 2072 look to you? We have notched up 26 percent gains from the previous Diwali. Will the next Diwali bring something like a 20 percent gain? Is there 30,000 on the Sensex and 10,000 on the Nifty given?

A: I do not want to game the Sensex or the Nifty levels. They will appreciate but I cannot say 20 percent-30 percent or 10 percent but to me there are phenomenal opportunities in the market, fundamentally things are changing, business sentiment has improved and numbers would follow now, very good news flow, decisions within India from the policymakers are coming in, of course there are only global headwinds that we need to worry about but even then India will standout as a market across the globe and particularly in the emerging markets India would standout, there is no doubt about that. So, I would focus more on individual opportunities than whether Nifty gives me 20 percent gain or the Sensex gives me 20 percent gain. I cannot game that because among those 50 stocks what gets weightage and what keeps going well, certainly IT falls off the play for, oil and gas goes through the roof, so it is difficult to game that but look at individual opportunities, remain invested, build a good portfolio and you may have even 50-100 percent gains by the end of next year.

Sonia: Every Diwali we wish each other and then we lament on the lack of participation from the retail community. This time around, do you think things are different? Is retail back in to the market or is there still a left out feeling that you are getting from the people you speak to?

A: There is a left out feeling, there is scepticism and I think that has got to do a lot with some of the regulatory issues that need to be sorted out because in my personal opinion, to get broader retail participation, a lot of regulatory changes, a lot of issues need to be ironed out to ensure lesser volatility in the market because volatility is the biggest enemy of the retail investor. He cannot game it and we need to find ways to make the markets in the price discovery mechanism much more transparent and stable and that is what is plaguing the market. If you see with such a large marketcap, stocks with 1.5-2-3 lakh crore marketcap and they move 5-10 percent in a jiffy, it obviously means that there is something wrong, somewhere structurally and this is what keeps the retail investor out and totally unnerved by this volatility. So hopefully, but I think the regulators are understanding this and taking the right steps. Once these steps are falling in place, we would see a broader participation, retail would also come in and in any case, retail has mutual fund route always to come in whether it is the SIP which is the best option but I think regulatory issue was the biggest stumbling block for much wider retail participation. 


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