On financials, he reckons pruning positions in private banks, while things are changing in PSU banks, he said. Risk averse investors could wait for six months.
The Indian market witnessed a comeback of sorts, reacting to the positive GDP numbers for the second quarter.
The Sensex rose over 100 points, while the Nifty managed to trade above 10,250. Midcaps were seen outperforming the benchmarks.
Vibhav Kapoor of IL&FS told CNBC-TV18 that while the GDP numbers were good, they were partly expected as well. But the market, in its bull zone, is anyway rising higher. “The market is reflecting expectations of investors that things will improve in terms of macros and resultant increase in earnings,” Kapoor told the channel.
In fact, if the growth does not take place, which have been largely factored in as of now, then there are chances of a further fall or change in sentiment.
Speaking on the impact of Gujarat polls, Kapoor said that the Street could take note if there is a big disappointment in the polls.
Meanwhile, he is positive on the construction phase among infrastructure companies. “Road sector is starting to do better. Government has brought in reforms, there is emphasis on EPC, hybrid among others,” he told the channel.On financials, he reckons pruning positions in private banks, while things are changing in PSU banks, he said. Risk averse investors could wait for six months.