Nothing is going right for infrastructure companies at the moment. Yet, the levels to which the stocks have been beaten down, have made them attractive, N Jayakumar of Prime Securities, says in an interview to CNBC-TV18. Lanco, GMR and JP Associates are among the stocks that he sees value in.
Jayakumar thinks Crompton Greaves is a good buy between Rs 150-160. The stock has shed nearly a third of its value in the past few weeks after disappointing first quarter earnings and lowering of full year guidance.
Jayakumar is also batting for JSW Steel, a stock that has taken a pounding over the last week after the Supreme Court banned iron ore mining in Bellary. The stock is down around 25%, but Jayakumar feels it is close to bottoming out. He is bearish on the prospects of both gold and oil, and expects a sharp correction.
As for the stock market, Jayakumar says the downtrend has been largely due to short selling rather than delivery-based selling. He expects the Reserve Bank of India to pause rate hikes after September. Below is the edited transcript of Jayakumar
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