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Nifty a buy at 8000, sell at 9000; like Cipla, SBI: Kotak

On the reforms package for PSU banks anounced on Friday, Bhatia says it is just one of the steps for revamping state-owned banks and that a lot more needs to be done.

Looking at corporates earnings for the June quarter, the market will have to tone down expectations, Sandeep Bhatia of Kotak Institutional Equities tells CNBC-TV18.

He expects an aggregate earnings growth in ‘high single digits’ for FY16, instead of the 12- plus percent growth the market was hoping for.

“The micro is slow, though the macro is improving,” he says, adding India right now has the best macro environment among in the emerging market space.

He sees challenges to a pick up in the capex cycle even as there are signs of comsumer demand reviving.

Bhatia expects the market to be rangebound for some time and feels 8000 on the Nifty is a good buying opportunity and 9000 is the time to book profits.

On the reforms package for PSU banks anounced on Friday, Bhatia says it is just one of the steps for revamping state-owned banks and that a lot more needs to be done.

He says there needs to be a cultural change and that political leaders need to stop treating PSU banks as their ‘jagirs’ for a real change to happen.

Among state-owned banks, he is bullish on SBI and says he will look at other banks in this space only when the economic cycle picks up.

In the pharma sector, Bhatia rates Cipla as one of the top picks.

Interview transcript to follow

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