Real estate can surprise; auto momentum unsustainable: JP Morgan's Mookim

“Within the whole largecap framework, we think the Indian financials still look okay especially on a relative basis compared to the consumer pack. Our portfolio recommendation would be extremely financials heavy,” he said.

On real estate sector, he said, “We do think that real estate, as a segment, can surprise people positively in this environment. This could be a space where many financials could start to find some growth.”

On COVID-19 he said, “We don’t care about the infection numbers, we care about the economic impact of the lockdowns and therefore the earnings numbers for the companies.”

Mookim said he is nervous about the auto sector. “There are improving wholesale numbers from the auto companies. Our worry is that the momentum that you are seeing now is unsustainable because a lot of the primary surveys that we have done, all of these tell us that confidence is pretty poor. We are underweight the discretionary space in the autos in the country on the argument that the consumer confidence is pretty weak,” he said.