Talking about the further outlook of the market, Prakash Diwan of Prakashdiwan.In believes that re-rating of PSU banks is taking place. Not only big but small PSU companies are also doing capex. Prakash Diwan believes that new loan demand for banks is expected to increase. He sees the valuation of HDFC Bank as good.
Good growth possible in auto accessory sector
Talking on the top sectoral themes, he said that there is improvement in two sectors which may become visible by the earning season. The first is the consumption theme. In the consumption theme, the phase of pet up demand will start during the festival season. In such a situation, investors should keep an eye on high value goods. This includes many such stocks like jewellery, home appliances, white goods which have not been able to fully participate in the market rally. The second theme is auto accessory sector. Good growth can be seen in the auto accessory sector in future. In auto accessories, it will be beneficial to invest in focused auto accessories companies like Sona Blw, Bharat Forge. You will be seen performing well in stocks in future.
Tiller companies may see bright future
Talking on Agri and Irrigation space, Prakash Diwan said that there is no clearly visible market leader in the infrastructural (pipe, sprinkler) space of Agri and Irrigation space. In such a situation, Jain Irrigation, which is currently considered a turnaround case, has not been given much focus because changes have taken place very rapidly. The stock has achieved the target of Rs 30 to Rs 60 in a very short period. Prakash Diwan says that tiller companies may see bright future.
These stocks will show strength going forward
Prakash Diwan believes that PFC, REC can get better returns than the market. For long term, investment can be made in PFC, REC. These stocks are portfolio stocks. My outlook on Zee Entertainment is positive. If there is a turnaround in the company’s stock, it will see a sharp rise. There is no visible problem in Zee Entertainment-Sony after the merger. Prakash believes that Tata Steel can see more glory from the current level. There has been good growth in Tata Steel’s Indian business. This stock will see a re-rating as soon as the Eplans Wages settlement comes.
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