How are you looking at the overall market set-up at a time when the market is scaling new peaks?
The markets are doing very well. In fact, midcaps are having a party again. In the short term, the valuations need to catch up. The market seems to be expensive when it comes to valuations. You will see bouts of profit taking which can lead to small corrections but I am not looking at a big correction. Any correction will be an opportunity to get into the market for people who have been waiting.
What is the outlook when it comes to the entire banking space?
I am positive on the BFSI space, whether it is select private sector banks, regional private banks, PSU banks like SBI and Bank of Baroda or regional banks like Federal Bank. In the NBFC space, we are positive on housing finance.
In the private sector also, there are stocks like Kotak Bank which have been consolidating. They have a decent potential to move up from these levels. Any dip there would be a good opportunity for investors to enter even at these levels.
How are you looking at the overall demand momentum in real estate?
The opening up is happening now and the interest rates are so low. There is good demand in real estate. More people will go after hard assets and use this opportunity of low interest rates. Pure real estate companies like DLF or Oberoi Realty have been seeing some good interest. I think there can be a decent up move based on their bookings and sales going ahead.
What is your outlook on GAIL?
Presently, I am very positive on gas sector as a whole. There is opportunity in GAIL or even distribution companies. I am more positive on Mahanagar Gas or Indraprastha Gas. You are going to see steady growth in this space. The ongoing capex will increase the capacity of GAIL and their topline growth.
What is your top pharma bet?
My top pharma bet continues to be Divi’s Lab. API will keep growing because of the China factor. Divi’s has been performing very well and it will continue to do well. Its return ratios will see tremendous improvement. I continue to be positive on Divi’s Lab as far as my top pharma bet is concerned.
