Friday 13 June 2008

more pain likely....

Nandan Chakraborty, head of research, Enam Securities, said the call on interest rate right now is that it can get worse before it gets better.

"There is liquidiy in India and abroad but the liquidity has a huge risk premium and inflation element. That is why interest rates are going up. Whether it is inflation or currency depreciation, they are all going to get worse before they get any better for at least the next couple of months."

So, is this the time to invest in the markets? Nandan says: "Absolutely not.. there is still a lot of uncertainty. Once there is more clarity, an investor can enter the market even if it is at higher levels.."

He added that they like mid-cap pharma and FMCG, and "do not like stuff like energy..