Expect a bull run for commodities for next 18-24 months, says Enam Holdings

Sivaram said that there is a sharp liquidity-driven rally that may continue. "Normally the last leg is very ferocious. So the party is continuing, it is better to stay on in the party for some more time,” he said.

In terms of financial stocks, he said, “We were becoming very constructive on public sector undertakings (PSUs) in general.”

He is a bit cautious on auto stocks. “The stocks have rallied very sharply, I wouldn’t chase them right now. Companies that are dependent on exports are facing some sort of a container shortage, commodity prices have significantly gone up, I don’t think they will be able to pass on everything. So as much as the demand is strong, there are numbers of other elements which are working against them right now,” he mentioned.

Sivaram prefers consumer discretionary companies over consumer staples companies. “Fast-moving consumer goods (FMCG) is not one of the favourite lists. The risk-reward is far higher and the valuations don’t stack up right now at these prices. As the economy starts to normalize, we would see spending coming back in many of the other discretionary category, so we would rather bet on those than staples.”