Prefer private sector banks over PSU banks, says Mayuresh Joshi of Angel Broking

In an interview to CNBC-TV18, Mayuresh Joshi of Angel Broking shared his reading and outlook on specific stocks and sectors. Joshi advised that one should prefer private banks over PSU banks.

"In the PSU universe, State Bank of India is something that is the only stock that I probably liked in the past but the bias probably still remains with the private universe where the earnings growth probably looks far more solid over the next few quarters," said Joshi.

On auto stocks, he said, "Anybody holding on can probably hold on to a stock like Ashok Leyland but for the auto universe as a whole, I think it is going to be a very slow and gradual recovery, normalisation is going to happen but there are a lot of intermittent hurdles on the way - ABS for example that has got introduced, that is probably going to raise the cost for two-wheelers as well. Similar is the case for passenger vehicles where price hikes might be required in the second half as BS VI norms start getting rolled out. So in this space, we do hold stocks like Maruti or Eicher Motors but you probably need to wait for fresh buying and wait for an opportune time to probably stagger your investments into the auto names."