Avoid infra sector: Nirmal Jain

Nirmal Jain, Chairman, IIFL advises to avoid infra sector at current levels.

Jain told CNBC-TV18, “I would say that infrastructure is just avoid because I don’t think anything is happening on – although great expectations were aroused when things started moving on reforms in terms of diesel price hike and capping the domestic gas subsidy and things like that.” He further added, “Nothing has moved in terms of say power sector or mining or even infrastructure on the whole and therefore – even if things start moving at government front many companies are heavily debt ridden and they are overly leveraged. So, avoid that sector at least in near future, so the broader market call will be bottom up but the sectors of choice would be IT as I said other than Infosys, pharma, also look at oil and gas." "Companies like Oil and Natural Gas Corporation (ONGC) will see significant easing of the subsidy burden led by diesel price hike as well as fall in the crude oil prices globally wherever they import where in oil marketing companies. So, be selective but invest in equities from a longer-term perspective. Markets can be volatile, there can be negative news from Europe or anywhere else and that would send jitters but valuations have become attractive in many sectors and I don’t think one should write-off India or Indian economy or Indian market on the whole."