Don’t buy defensive stocks; banks well placed and will do better: HSBC AMC’s Tushar Pradhan

According to him, auto ancillary stocks can face headwinds owing to higher commodity prices.

“Cars, high-end discretionary could be attractive. However, be careful about supply disruptions. The world is not a smooth place logistically. There are issues in terms of COVID exposure continuing in certain areas and ancillaries. For example, we will face issues about higher metal prices and that may lead to some dampening in demand, but overall it’s a positive space to look at,” said Pradhan.

On market, Pradhan said, “There are big headwinds in terms of our economy. However, the tailwind is clearly in the form of international sentiment especially in the US where most of the assets get allocated, but India is going to be a bit patchier. Parts of our economy will continue to struggle for some time because of the severity of cases (COVID) that we have seen, but overall I am optimistic about how this year will shape up.”

For the entire interview, watch the video