Moneycontrol
May 17, 2018 10:50 AM IST | Source: Moneycontrol.com

Macros turning shaky due to rise in oil prices; bullish on consumer durables: Dipen Sheth

Sheth spoke on a variety of stocks and sectors during the interaction. Reacting to results in consumption space and giving an outlook on scrips in the sector, he said that he liked ITC, Marico as well as Dabur.

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Staging a pullback from its 10 percent fall from record highs, the market has moved forward over the past few weeks, with the Nifty even reclaiming 10,900 briefly.

However, there have been a few macro-economic headwinds for the market that several experts have pointed out.

For instance, crude prices have been on the rise, with Brent surging to $78 a barrel in the recent past. The rupee too, has managed to breach 68 to the dollar.

Dipen Sheth of HDFC Securities concurs with this view.

"Macro situation is currently getting a little shaky on the back of crude prices," Sheth told CNBC-TV18 in an interview.

The expert spoke about numerous stocks and sectors during the interaction. Reacting to quarterly results in the consumption space, and giving an outlook on scrips in the sector, he said he liked ITC, Marico and Dabur.

"ITC has shown strong resilience despite challenging tax norms. The stock is a value stock, while others are growth stocks," he told the channel.

Meanwhile, Sheth said he also remains bullish on Hindustan Unilever and has a buy rating on the stock. "HUL has the most broad and diversified product portfolio in the country," he observed.

Speaking about the consumer durables space, he said Havells has quite an opportunity to expand its operating margins over the next couple of years, and that he expects it to be the leader of the pack.

"I believe that durables is the place to stay in from a 10-year perspective," Sheth said.

Among non-banking financial companies (NBFCs), he said that one needs to look at companies that do well in the lending side of their respective businesses. He favours Cholamandalam Investment and Finance in this space.
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