Markets may see a short rally in Jan-Feb: Jagdish Malkani, NSE/news07012012

Jagdish Malkani: I have a long list, but on top of my head I would say Max India is not a bad one, great play on insurance, good management, healthcare, great favourite of FIIs and good quality private equity players and the promoter Analjit has proved his mark in his other investments. This has come down from a high of 230 or something to around 145. Of course insurance a bit maligned by the ULIP story earlier this year and recently this whole general insurance motor pool account, etc. But it is all in the price and a couple of very prominent FIIs are very bullish, have bought into at higher levels. So this one could easily give you a 20-30% bump-up in 2012.

ET Now: Is there an earnings trigger out here? Have you tried to map their numbers as to what it will do in the next 12-18 months?

Jagdish Malkani: No. Going by insurance is a slightly more complicated play, actuarial valuations, how they are doing in the marketplace, market share. The softer things are certainly improving with every quarter and the management is very credible and management these days, especially in such bear markets, is crucial. So this has been pummelled recently by maybe some institutional selling, etc. So, this is an opportunity.
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