Upbeat IT, pharma, auto; avoid FMCG cos: Ajay Bodke

An array of issues will steer the Indian equity market in the days to come, says Ajay Bodke of Prabhudas Lilladher. Of these, the Bihar elections, push for passing of the Goods and Services Tax Bill in the Parliament's Winter Session, and the trend in non-performing assets will be critically watched, he adds. Speaking to CNBC-TV18, he cautions investors of the approaching earnings season though he believes second quarter would be better than the first.He is positive on Maruti and bets on commercial and passenger vehicle in the auto space. He also bets on Shriram Transport from a medium-term perspective. Bodke has selective pharma recommendations which include Sun Pharma, Glenmark and Jubilant Life. Among midcap IT stocks, he is bullish on Mindtree and Persistent Systems and believes they will have strong earnings growth on the back of Digital India campaign. He is cautious of the FMCG sector, as most of the companies have already reached their earnings peak. He is of the view that food companies dealing into biscuit and flour are trading at “daunting valuations”.