INDIA: ACC, Ambuja, India Cements top bets in cement: KSEMA Fincon

A quick word on the cement counter and what would you do with them? 

Seshadri Bharathan : We have seen in last couple of months the dispatches in some of these cement companies have increased by anywhere between 10% to 20%. My stock picks in the cement space would be ACC, Ambuja Cement and India Cement. 

We have managed to shape up 2.5% on the index right now at least in the week gone by a little bit of a blip this time around. Any conviction bias that you would have at these levels? 

Seshadri Bharathan : Not really I would say that the Nifty would trade in the range of 5500 to 6000 levels. So I would suggest that investors can start nibbling into some of the frontline IT stocks, front line banking stocks and auto stocks. So if market falls from here further then these are some of the front line IT stocks, front line bank stock like ICICI Bank , Axis Bank , Punjab National Bank etc. would be a good level to enter the stocks. 

China raises the reserve requirements by 50 basis points. What are the implications of this right now and how much of an impact does our stock market take from this? 

Seshadri Bharathan : If you talk about Chinese markets we had seen that the Chinese government was trying to slowdown the economic growth in the country. We had seen that some kind of real estate bubble, chances of real estate bubble happening there and the government was very worried and they are taking the corrective measures by increasing the rate hike so that the economy cools off. 

Having said that if you talk about Indian markets I think currently the liquidity is tight in the Indian banking system and I do not see any immediate reason for RBI to increase this cash reserve ratio here or the chances are that RBI going forward might cut CRR to increase the liquidity in the banking system but having said that I think globally we might have a negative impact of this because this would mean that the import of commodities might come down and we might see commodities selling of happening in the European markets as well as the US markets.