Bank, energy, IT stocks to push market profits: Kotak Inst

Domestic markets marked better-than-expected performance in the last few sessions on positive cues received by the global peers. The market has opened up with mild gains now amid extreme volatility.

Talking about the sector specific stocks in an interview on CNBC-TV18, Sanjeev Prasad executive director and co-head at Kotak Institutional Equities, Securities said that banking, energy and IT sector stocks are expected to do well. In the fourth-quarter, certain sectors could turn negative. However, stocks of Coal India, Tata Steel and Sterlite look positive. He feels that the markets typically trade between 12-16 times and anything below 12 becomes a great buying opportunity. When it goes above 16 times, it becomes a selling opportunity, however, investors should also refer to the trade in the context of growth in earnings. "Next year we are looking at about 18.4% earnings growth for the BSE 30 but lot of it is coming from sectors like banking, energy, metals and technology and as of now we have fair degree of confidence in earnings numbers of these companies," he added. For complete details, watch the accompanying video. Read more to know why Sanjeev Prasad sees certain sectors facing pain in Q4 nos.