PSU banks are still an avoid, said Nishcal Maheshwari because recapitalisation may not help them come back strongly and will continue to lose market share.
There was renewed optimism in the market ahead of the Gujarat Exit Polls, major indices closed in the green.
Both the Nifty and Sensex ended with gains of about 60 basis points. In broader markets, Bank Nifty surged 167-points closing above the 25,000 mark. However, midcaps underperformed slightly and ended flat.
The Sensex rallied 193.66 points to 33,246.70 and the 50-share NSE Nifty gained 59.10 points at 10,252.10.
Nischal Maheshwari of Edelweiss Securities is of the belief that the Gujarat election outcome like many other earlier elections is a non-event, it will create a flutter for few days and then it will be back to normal with the market focusing on macros, earnings and international news.
The outlook on the market continues to be positive, said Maheshwari but with all eyes on earnings. According to him, earnings for the next two quarters and FY19, should be on an upward trajectory.
Ashwani Gujral of ashwanigujral.com said he would not go long into events. At 10,100 and 10,150 shorts had their day and they have covered.
According to him, we are almost at the bottom and so if nothing untoward happens (Gujarat election outcome) then we will have a rally, so the odds of decline have dropped to 20 percent based on one outcome where there is a defeat.
Talking sectors/stocks, Maheshwari said historically in a rising interest rate scenario the NBFCs do not outperform the private sector banks. So investors have been advised to invest in private sector banks, NBFCs and then PSU Bank in that sequence.
With regards to real estate sector, he says they positive on them both on the back of RERA and GST and demonetisation. On ground a lot of competition for big players is going away, so existing big guys, clean balance sheets will be able to scale up their businesses.
The house is also very positive on construction space, said Maheshwari. Here one may find good companies coming out of problems and smaller companies may scale up. They are upbeat on Sadbhav Engineering, NCC , said Maheshwari.
PSU banks are still an avoid, said Maheshwari because recapitalisation may not help them come back strongly and will continue to lose market share.Fundamental expert SP Tulsian of sptulsian.come, technical experts Mitessh Thakkar of mitesshthakkar.com and Abhimanyu Sofat of IIFL also shared their thoughts on specific stock.