In the stock markets, there is a smile across the board because the verdict has been just what the markets wanted. This, experts say, in the near term will almost certainly drive the markets by 10-20% over the next one week.
CNBC-TV18 spoke to a market experts on which stocks and sectors might outperform and which ones would remain underweight. The panel included Manish Chokhani of Enam Securities, Samir Arora of Helios Capital and trader and investor, Rakesh Jhunjhunwala.
CNBC-TV18 spoke to a market experts on which stocks and sectors might outperform and which ones would remain underweight. The panel included Manish Chokhani of Enam Securities, Samir Arora of Helios Capital and trader and investor, Rakesh Jhunjhunwala.
What's ahead for infrastructure sector?
Chokhani and Arora opined that the banking, infrastructure, telecommunication and real estate sectors looked good.
Chokhani said, “The Indian market will get its next Sunil Mittal from the infrastructure space. Whether it will be a GMR or a GVK or even Reliance Infrastructure, but that’s the sweet spot for the next three to four years for India at least”.
Arora too feels that the infrastructure sector will outperform. Jhunjhunwala, however, refused to buy the argument. He said that though the real estate sector ‘will not drown now’, the stocks were not very significant in the current valuations. “I don’t find them attractive,” he said.
According to Jhunjhunwala, the retail and the commercial (infrastructure) space would not revive easily. “(In) residential, by cutting prices one will have a very good market. However for retail, even cutting rent will not help much. Commercial space also is facing a lot of over-supply.”
Chokhani and Arora opined that the banking, infrastructure, telecommunication and real estate sectors looked good.
Chokhani said, “The Indian market will get its next Sunil Mittal from the infrastructure space. Whether it will be a GMR or a GVK or even Reliance Infrastructure, but that’s the sweet spot for the next three to four years for India at least”.
Arora too feels that the infrastructure sector will outperform. Jhunjhunwala, however, refused to buy the argument. He said that though the real estate sector ‘will not drown now’, the stocks were not very significant in the current valuations. “I don’t find them attractive,” he said.
According to Jhunjhunwala, the retail and the commercial (infrastructure) space would not revive easily. “(In) residential, by cutting prices one will have a very good market. However for retail, even cutting rent will not help much. Commercial space also is facing a lot of over-supply.”
Will retail be the next big thing?
According to Jhunjhunwala, the next Sunil Mittal would emerge from organised retail. “The sector has got the biggest ability to grow. Today, 5-8% of retailing is organised. India’s retailing market grows by 10-12% a year. If this 5-8% is to go to 20-25%, one can imagine what kind of a market one can expect in the next five to seven years.”
Arora, however disagreed saying, “There is no billionaire who is going to come up from organised retailing. It’ll be in infrastructure.”
According to Jhunjhunwala, the next Sunil Mittal would emerge from organised retail. “The sector has got the biggest ability to grow. Today, 5-8% of retailing is organised. India’s retailing market grows by 10-12% a year. If this 5-8% is to go to 20-25%, one can imagine what kind of a market one can expect in the next five to seven years.”
Arora, however disagreed saying, “There is no billionaire who is going to come up from organised retailing. It’ll be in infrastructure.”
Should you bank on banking and insurance?
Positive on the banking sector, Chokhani said, “The banking index is very heavy with PSU banks, so the sector is going to probably just take-off.” Next, he said, “You will expect insurance reforms to happen because that was the most resisted bill by the Left. So that’s very likely to happen. Also, if money has to come into India, if you just go down the sectors you cannot put that much more into oil and gas. You’re very unlikely to go into technology. What's the most under owned bet for the foreigners? Most FII limits are open in the banking sector. I think the biggest flow is going to be in the banking space,” he added.
Positive on the banking sector, Chokhani said, “The banking index is very heavy with PSU banks, so the sector is going to probably just take-off.” Next, he said, “You will expect insurance reforms to happen because that was the most resisted bill by the Left. So that’s very likely to happen. Also, if money has to come into India, if you just go down the sectors you cannot put that much more into oil and gas. You’re very unlikely to go into technology. What's the most under owned bet for the foreigners? Most FII limits are open in the banking sector. I think the biggest flow is going to be in the banking space,” he added.
What sectors will underperform?
Chokhani said, in the context of a rising rupee and more flows coming in, it is unlikely that one gets significant performance from the technology (IT), pharma and fast-moving consumer goods (FMCG) sectors.
Commenting on the performance of the oil sector in these times, Jhunjhunwala advised investors to keep away from oil companies as long as they (the Government) didn’t de-control it. However, he said, “Once they de-control it, there is going to be big money. I would give it a 30-40% chance that it would be de-controlled.”
Chokhani said, in the context of a rising rupee and more flows coming in, it is unlikely that one gets significant performance from the technology (IT), pharma and fast-moving consumer goods (FMCG) sectors.
Commenting on the performance of the oil sector in these times, Jhunjhunwala advised investors to keep away from oil companies as long as they (the Government) didn’t de-control it. However, he said, “Once they de-control it, there is going to be big money. I would give it a 30-40% chance that it would be de-controlled.”
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