PSU index keeps scaling new highs, auto posts strong performance: Marathon Trends' Atul Suri

Atul Suri

The PSU index - including PSU banks, defence and energy - is a sector that has consistently been making new highs and the automotive sector - especially auto ancillaries - has shown a strong performance, said Marathon Trends PMS chief executive officer Atul Suri.

Suri noted that he remains bullish on India amid a 'global repair in equity markets' that is happening lately.  In an interview with CNBC-TV18, he expressed confidence in the Indian stock market outlook anticipating 'another level of growth'.

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The market expert said while the Indian market has seen some stock correction recently, it was a 'big outperformer' during November 2022 when compared with European and Asian countries.

Talking about the top sectors to look out for, Suri mentioned that electrical equipment space, defence, hotel and auto stocks are sectors that are leading things ahead and are all at lifetime highs. "These are the leadership thematic or the trends that are played out," Suri noted.

According to Suri, the electrical equipment space is the most significant trend being played out, followed by the defence sector, which has consistently achieved lifetime highs. He also emphasised the upbeat performance of hotel stocks, which have recently broken out to new highs after a period of consolidation.

"We may have time-wise corrections, but the important part is these are the times to really deploy," he said.

Benchmark indices Nifty and Sensex ended lower on May 16 with HDFC, Tata Motors, M&M, HDFC Bank and Apollo Hospitals being the top losers.  Among sectors, the auto index was down 1 percent, and healthcare, infra, bank, and metal indices were down 0.4 percent each, while the PSU Bank index was up 0.6 percent.