Look at banks, NBFCs with fewer asset qualities: Ambit Capital

Nitin Bhasin, MD & Head-Equities Research of Ambit Capital in conversation with CNBC-TV18 said that he is overweight on IT, pharma, metals, and select financials.

“For last six-seven months the kind of portfolio approach we had put out was investors should be over-weight on IT stocks in India, pharma stocks in India and select exporters like chemicals and even for that matter metals,” says Bhasin.

“Alongside start looking at the banks or the NBFCs where there are less asset quality issues or valuations relatively more favourable, so that has been our portfolio approach,” he said.

Bhasin said, “One should start even looking at adding or owing names like Bharti Infratel and also relatively less expensive names like OMCs right now, hence those would dominate a portfolio.”

“The portfolio risk management in terms of what sort of an expensive names you own have to be actually start looking at in terms of growth expectation. So hence I would still maintain that metals one should remain overweight for the next 6-12 months, remain overweight on pharma and the other sectors that I mentioned.”

On metals he said, “The preference order would be Tata Steel followed by Hindalco Industries should be the ones which people should be overweight on and we maintain that.”

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