Loganadan overweight on capital goods sector

Excerpts from Closing Bell on CNBC-TV18 Watch the full show »

Ajay Loganadan, Head-Investment Advisory Group, HSBC Private Banking is overweight on capital goods sector.

 

Loganadan told CNBC-TV18, "I wouldn't be commenting on individual stocks but if I look at the sector itself - as far as utility space, we are neutral utilities. If I look at the capital goods space which is related to the entire infrastructure space, we are fairly bullish there, that is the sector that we are overweight on. Suzlon Energy is a wind energy company. I don't want to comment on the company itself but if I look at these two spaces in particular the utilities we are neutral. But if I look at capital goods, the ancillaries to the entire infrastructure space - we are very bullish. That is one of our key overweight sectors right now."

 

He further added, "What we are looking forward out into next year is really infrastructure spend coming through. Possibly relaxations as far as FDI norm into infrastructure and with that we should see earnings growth fairly significantly out into 2011-2012.  So right now given valuations in the capital goods sector, that is a sector that we remain overweight on."