Positive on large NBFCs, banks; two-wheeler cos in focus: Motilal Oswal AMC’s Manish Sonthalia

Motilal Oswal Asset Management Company (AMC) will look at large non-banking financial companies (NBFCs) and banks rather than the smaller ones, said Manish Sonthalia, head equities- portfolio management service (PMS) at the investment firm, told CNBC-TV18.

“If there is a cyclical recovery, and that is going to happen, it is going to benefit the larger entities both on the NBFCs and the banking space disproportionately as compared to the smaller ones because the micro, small and medium enterprises (MSME) space still remains stressed and the midcap banks or midcap NBFCs could have to face a brunt on that aspect going forward,” he said.

Sonthalia was also bullish on auto stocks, especially two-wheelers stocks like Bajaj Auto and TVS Motor. “I would look at the auto space as a cyclical recovery play and on that front would look to buy automobile if there is some correction and we are seeing some correction,” he said.