Financial services to be 2016's focus; like power: Pros

With expectations of lower commodity prices, fall in inflation and pick-up in the credit growth in 2016, financial services will be one of the sectors in focus despite warning from the Reserve Bank to clean up balance sheets, says Mayuresh Joshi of Angel Broking. Speaking to CNBC-TV18, Joshi says there is visible shift in engineering & manufacturing and consumer discretionary space. Joshi is bullish on names like ICICI Bank, MBL Infra and Bajaj Electricals.Market expert Ambareesh Baliga says that the power sector has seen a pick-up with focus from government as well as order inflows in last 5-6 months. Similarly, he says, airline companies are now giving better returns than earlier. On realty, Baliga says that the Mumbai realty will be stagnant for next 18-24 months where inventory is concerned. Prices need to come down to see any movement, he adds. However, he expects growth in affordable housing segment and recommends companies like Brigade, Puravankara and Sobha Developers. Agreeing to the view, Joshi says that there still is no sign of recovery in the realty sector. Sluggish pre-sales as well as leveraged balance sheets make the sector unattractive. Housing finance companies will instead drive the sector, he says. LIC Housing Finance is Joshi’s pick in the segment. Joshi likes Sun Pharmaceutical despite recent warning by the USFDA on one its plant. The warning will impact the company, he says but strong commentary by the management still makes it attractive.Sudarshan Sukhani of s2analytics.com recommends names like Bajaj Finance and Marico, in which he expects deep correction in future. Watch videos for more.