Stay away from capital goods space: Atul Badkar

Stay away from capital goods space, says Atul Badkar, Edelweiss Securities.

Badkar told CNBC-TV18, "If you look at the entire infrastructure and I would like to extent this beyond BHEL, L&T, IVRCL, JP Associates or even the realty space, I think the entire sector has been broken down. The concern has been on interest rates, on inflation, their order books."
He further added, "The entire capital good space specifically as your rightly mentioned BHEL, L&T seem to be breaking down and actually L&T surprising a lot of us. But in this sort of a trend, I do not think you would want to stick your neck out and go long on these stocks. Very clearly you stay away. If you were long these stocks I am sure most of them would have booked their losses by now but going forward, I do not immediately see any uptick in these names."
"On the macro front on BHEL if you see any rise around Rs 305-310 levels you may want to short this because you can see BHEL at around Rs 280-285 is quite possible and even L&T you are not going to short  this immediately but definitely at every rise you may want to short it. So that is one sector which you may want to stay away from taking any long positions but not short them immediately