Invest in private sector banks, says Amit Dalal

One can take an investment call on private sector banks, says Amit Dalal, Executive Director, Tata Investment Corporation.

Dalal told CNBC-TV18, “The biggest problem in this market is that if you are an institutional investor and you want to deployments funds, there are very few sectors in which you can put money in with confidence that there is going to be consistent performance, lower risk performance and private sector banks FMCG, pharma and to some extent it had been IT because you are hedging yourself against a rupee depreciation where were the only places, which you could hide.”

He further added, “Going forward that problem becomes even more acute because you already have one underperformance coming from IT and the rupee at 55 is what the guidance is for the year does not allow you any protection against devaluation because currency expectations are around that level. So we again narrow our choice of stocks to buy and private sector banks definitely make an investment call. In terms of relative valuation and in terms of the growth there is one stock, which we own and has run up a lot in the last few months KPIT Cummins that shows a considerable promise."