Diwali bash! Raamdeo Agrawal bets on consumer, autos

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Diwali bash! Raamdeo Agrawal bets on consumer, autos

Raamdeo Agrawal, Motilal Oswal Financial Services is positive that this is a good time to buy stocks. In a CNBC-TV18’s special show Mahurat Trading, Agrawal says that next 12 months will be much better for investors.

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ALSO READ See what other experts are saying about markets See what FIIs are saying about the markets See what Udayan Mukherjee is saying about the markets

Samavat 2068 came and went away with little hopes of prosperity. We are at the brink of a crisis that may be bigger and mightier than the 2008. However, there are experts who feel that though there is lot of pessimism around, Indian market will usher in spring soon.

Raamdeo Agrawal, Motilal Oswal Financial Services is positive that this is a good time to buy stocks. In a CNBC-TV18's special show Mahurat Trading, Agrawal says that next 12 months will be much better for investors.

He is betting on selected consumer stocks. In the auto sector, he like Hero MotoCorp and Bajaj Auto . Agrawal recommend holding on to L&T and prefers Bharti among the telecom companies.

Here is an edited transcript of his comments. Also watch the accompanying video.

Q: Are you looking forward to the next 1 year with optimism or do you think it will be a rough year like the last 1 year has been?

A: We had a very good last Diwali in the sense that Diwali was at perfect kind of situation. This is most imperfect kind of situation where everything has gone wrong, what could go wrong. There is lot of pessimism around. I don't know about the markets, but good time to start looking at a stocks picking and I hope next years, next 12 months will be much better for the investors.

Q: Actually the year gone by hasn't been that bad for you because I was just seeing that Hero Moto is up 13%, the only competition that ITC has. Bharti also is up about 15%, so not so bad in terms of Diwali performances. But the big question going into next year is also about earnings stripped off all the global concerns. People are quite worried about the kind of tone we have seen in earnings this time around. On that account do you think we have more pain to bear?

A: Aggregates are looking still pretty weak. But my sense is that individual stocks - now not bother you so much about the broader market. Clearly there are two types of markets, one is completely beaten down and one is completely in the boom time. So, we have to figure out, which are the companies, which have earnings on their side and which are going to do well there and which are the managements, which have taken care of their shareholders.

They are rewarding their investors with the dividends and the valuations are reasonable. You cannot get at very cheap these companies. But I think that's how you have to go about investing and I think still there is lot of steam in lot of consumers stocks. But I would still think that selectively consumer stocks would do well in the next 12 months or so.

Q: Last Diwali when we spoke to you, you were talking about owning Hero Motors and owning stocks like Bharti. You were bullish on them. Can you give us a couple of names, which you are feeling really bullish on aside of those because they have done quite well for the next 1 year?

A: Yes, one of the segments, which come to my mind, is clearly public sector. Banking per se will do well. Private sector banks will also do well, but they have not come down that much in relative terms, but public sector banks are beaten down absolutely out of shape and it has absolutely out of favour for last 1-1.5 years.