Corporate banks, IT and consumption stocks are our top pick: BOBCAPS
The market will remain range bound till elections and will expand only post- elections," said Ratnesh Kumar, MD & CEO, BOBCAPS
Despite the border tensions and debt market problems, Nifty50 has held on to 10700 levels. "The market will remain range bound till elections and will expand only post- elections," said Ratnesh Kumar, MD & CEO, BOBCAPS.
Kumar said that even though there are a number of negative cues, positive factors like rise in growth, low inflation and possibility of further rate cuts are underpinning the market stability. "Earnings recovery is also likely in the coming 12-18 months," he added.
He also said that there is lot of value emerging in midcaps but from portfolio positioning point of view, one should focus on areas that are seeing earnings recovery. "On top of the list is banks, especially corporate banks, IT and consumption. From the consumption space the house is more positive on discretionary like autos, home building but not FMCG," Kumar said.
According to Kumar, from a 12 month perspective, the growth and volume numbers for autos will improve, especially on the car side.
With regards to debt market problems, he said it could be some more time to settle down but market point of view the first shock was negative but going forward it will probably take it in the stride.
First Published: Feb 28, 2019 11:32 AM IST
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