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See Nifty at 9200 in a year; 16-18% earnings jump:ICICI Sec

Ravi Muthukrishnan, Co-head research, ICICI Securities advises investors to look at quality midcap stocks, as discount between largecaps and midcaps have struck down dramatically.

Prolonging bullish tone of the market, Ravi Muthukrishnan, Co-head research, ICICI Securities has a Nifty target of 9,200 in a year’s time. In addition, he expects earnings to grow 16-18 percent in FY15-16.

With most earnings meeting street estimates, winter session of Parliament coming in and anticipation of various reforms encircling the Budget, he sees huge upside for the market hereon.

In an interview to CNBC-TV18, he advises investors to look at quality midcap stocks, as discount between largecaps and midcaps have struck down dramatically.

Meanwhile, he maintains a bullish stance on the consumer discretionary theme in India and likes Dish TV  from that space.

Furthermore, he prefers Oberoi Realty  and Ashoka Buildcon  from the construction sector.

Below is the verbatim transcript of the interview:

Q: I don’t know if you heard Anoop Bhaskar of UTI saying in the Morning Star Conference that he is worried about bubbles especially in some midcaps and largely the small cap space. Would you caution about midcap space, should it now be very serious bottom up?

A: When it comes to midcaps I agree with what Anoop says, we have been always advocating that you should look at quality stocks. Now over the last six months we have seen midcaps run up so much now that the discount between large caps and midcaps have shrunk so dramatically. So I don’t think that you have great quality, it is all about beta there. So for a moment you should step back and look at quality in midcap otherwise you will step into a danger of catching up high beta and low quality stocks.

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