Bharti Airtel top pick; pvt banks, NBFCs remain attractive: MOSL

Earnings bouncing back in the third quarter and strong domestic inflows despite demonetisation were the primary reasons that aided the current market rally believes Susmit Patodia, Head, Institutional Sales, MOSL.

Speaking to CNBC-TV18 from the sidelines of the Eight Motilal Oswal Eureka Conference he says they have a diverse representation from the financial sector right from RBL Bank to Yes Bank to Piramal Enterprises. As long at the public sector banks remain capital starved and growth is slow, the market share will continue to shift towards private banks and non-banking financial companies, he says. There is a huge value migration opportunity here, he adds.

According to him, consolidation in the telecom space would lead to bottoming out of the market. Bharti Airtel remains their top pick from the space because of its leadership and cost effectiveness of proft and loss (P&L) account. The industry is moving towards a 3 player market and once pricing stabilises it would be a game of capacity than ARPUs. It would also be easier for players to make money.

The oil marketing companies have been the biggest performers and have warmed up to government reforms and remain a direct play to crude prices, says Patodia.