Religare Capital underweight on energy space

Manoj Singla, MD and Co-Head Research, Religare Capital is underweight on energy and diversified financial space.

Singla told CNBC-TV18, "Among the large sectors one of the key overweight is actually energy and the reason for that is our house call is that oil price will actually come off through the air, we think oil will come closer to USD 80 or so and therefore we think some of the gross refining margin increase that we have seen in Reliance will actually come off. So among the large sectors we are basically underweight energy." He further added, "The second one which we are underweight is diversified financials, so not the banks per se but more the NBFC sector because that is where we see there will be maximum hit on the interest rate hikes. So, diversified financials and energy are the two big ones."