IT stocks can rise further; time to start betting on cyclicals: Invesco

“IT is in a position to deliver somewhere between 15 percent and 17 percent earnings growth over the next couple of years,” he added.

On the auto sector, Badshah said, “I would like to focus on some of the segments, which are a little more cyclical as far as autos are concerned, so commercial vehicle (CV) probably makes a better play from hereon.”

According to him, the financial pack still looks reasonable. “As we get out of concerns regarding interest on interest, moratorium etc, we should see some bit of credit growth come back in the system both on the retail and on the corporate side. If that were to happen then financials looks like a place where one can put some incremental money going forward,” he said.

On metals, he said, “Metal stocks appear to be fairly poised, they are cheap as well. At least from a price to book perspective. The only important thing there is balancesheets. If you are reasonably convinced with their ability to pare down debt or manage debt then they can make for a reasonably decent trade.”