Taher Badshah of Motilal Oswal AMC in an interview to CNBC-TV18 shared his readings and outlook on sectors and stocks.
The house has been upbeat on the private sector banking space and DCB Bank coming out with decent set of numbers has started the earnings season on a positive note, feels Badshah. According to him decline in cost to income ratio will drive the bank’s earnings over the next four to six quarters.
He does not expect the March quarter for the whole basket of banking stocks to be exciting but with the macros showing a positive trend and inflation trending down there could be possibility of rate cut by RBI soon enough, says Badshah. "RBI may want to support the green shoots seen in industrial growth," he adds.
So, with more rate cuts in the offing and likelihood of credit growth recovery in second half of the year, banking stocks with six months lead could be good investments, he adds.
On the pharma space, he thinks there are good opportunities in the midcaps with most of the companies having a decent pipeline for the next 12-18 months. However, valuations in the midcaps looks much more attractive than that of largecaps, feels Badshah.
Answering a query on action seen in the primary space, Badshah says although the house has no recommendations on VRL Logistics, the company seems to be a good play on land logistics which will be benefitted by economic recovery.
for the entire interview watch video