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Sanjiv Bhasin, Director, IIFL Securities, says “PSUs are in for a big re-rating. But be it State Bank, ONGC, NTPC or NALCO, we are finding places where we use this dip to buy and ignore the noise because the noise will always be murky. When they were going to new highs or 5000 on the S&P, Nifty did not cross 22,000, so be it. There will be some range-bound correction which will be an opportunity to buy.”

What is the market strategy for the day given what has happened in the US markets and how Asia is following it up?
Sanjiv Bhasin: It seems to be an excellent opportunity. The US market had not corrected. And even if the inflation number had come in line with what people wanted, it still would have corrected. It was a much overdue correction. Now, 2.9% going to 3.1% is only macro and economists will make hay while the sun shines. The undertone remains that the US is in a strong position as far as their soft landing goes and rate cuts will always be speculated.

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The RBI gave a clear indication that there is nothing much on the anvil. So, the humdrum of a fall in the US of 500 points was much overdue. We have already been to a place where the midcaps have gone. EBITDA is up 66% and margin at a 10-year high, 23.5% against 14%. So, the real value lies in the eyes of the beholder. I think PSUs are in for a big re-rating. But be it State Bank, ONGC, NTPC or NALCO, we are finding places where we use this dip to buy and ignore the noise because the noise will always be murky. When they were going to new highs or 5000 on the S&P, Nifty did not cross 22,000, so be it. There will be some range-bound correction which will be an opportunity to buy.

What about your investment in Zee and Paytm?
Sanjiv Bhasin: It continues to be painful for both Zee and Paytm. But that is part and parcel of investing. Some things are uncanny because of the incidents, but we think there will be a resolution faster than you thought and as soon as you see the back of some of these large promoters who have misled investors, This stock can be rerated. It is difficult to comment till we get more opinion on the legal case with the NCLT and the court. I will keep my observations still there.

You nudged me on Paytm and while they continue to face that serious risk of customer exodus after the RBI curbing its payments bank. Yesterday you had Macquarie cutting the price target all the way to 275. Considering that you have a holding here, have you exited Paytm completely?
Sanjiv Bhasin: No, we remain firm. We think that there will be more colour. Obviously, Macquarie is giving a technical call, which will increase the fear, similar to what he had said 2200 on HDFC Bank, so either of them will come correct and congratulations to him on the fear call and the greed call.

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