N Jayakumar, MD of Prime Securities, spoke to CNBC-TV18 to give his view on markets. Jayakumar said, most of the sectors are at rich multiples. So, from that perspective, we need to be very selective, going forward.
He said, “Stay probably with the extremely large dominant players, which post the pandemic especially, both in terms of accessing financing plus in terms of their own business orientation that have been deleveraged, are extremely strong in their own space.”
He said, “Essentially we are entering the first stage of a coordinated global reflation. Most folks in the world have seen that technology has disrupted and created jobless growth. That from a policymaker’s perspective is sought to be negated through creating jobs, infrastructure development.”
On PSU banks, Jayakumar said, “This is another space where earnings have been discounted at 0.7 book, 0.8 book etc. and somewhere down the line, markets, if I want to paraphrase boring will be exciting in the next 2-3 years. You need to have large, extremely large companies that are transforming but with stable cash flow, which have been valued very poorly by the markets and that boring part of the market could be the exciting part of your portfolio.”
“PSU Banks especially the top two fit the bill beautifully.”
On autos, he said, “Not a great fan of the auto space, the disruptions there are huge. Introduction of electric vehicle (EV) and EV related mobility itself as a definition have changed. I think work from anywhere is definitely here to stay. So, given the range of this, we are not very hot on the auto space”
For full interview, watch accompanying video.