In an interview with CNBC-TV18, Sanjeev Prasad, Managing Director and Co-Head of Kotak Institutional Equities shard his views and outlook on the market. He was speaking from the sidelines of the Kotak Institutional Equities - Chasing Growth Conference.
It looks like earnings growth is coming back fairly strongly, he said.
We are looking at about 25 percent growth for the Nifty-50 index, about 28 percent for entire coverage universe which is slightly above 200 stocks. So looks like there is earnings recovery, he added.
We are also seeing turnaround in infrastructure sector, said Prasad.
You have to be very selective in the public sector undertaking (PSU) bank space. We are generally much more positive on banks like State Bank of India (SBI) and Bank of Baroda (BoB), he further mentioned.
We still want to see a turnaround in non-performing assets (NPA) cycle before taking structural positive view on PSU banks. There is higher focus on resolution of stressed asset cases in India now, he said.
On auto sector, he mentioned that we continue to be fairly constructive on the four-wheeler names and not so much on the two-wheeler names.
For full interview, watch accompanying video…
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