Private banks, auto look strong, says Vineet Bhatnagar

Private sector banks and auto will continue to look strong at least as we move into the first few trading sessions of May, says Vineet Bhatnagar, PhilipCapital.

Bhatnagar told CNBC-TV18, "I think the entire shift in the sentiment was the confluence of a few things that happened almost at the same time. The way crude reacted and gold fell through and of course both of them have bounced back since then. Also the news about the inflation numbers that came about all of it meant that equities in general were looking supportive across the region and perhaps even globally. Also locally the macro positions started looking better on account of less than worse situation as far as the current account deficit (CAD) is concerned and also because of a possible rate cut by the RBI on May 03."
He further added, "So what it actually meant when people had to take positions on the long side was it that interest rate sensitive sectors were the immediate favourites and that was visible clearly in the financials and also in autos. Private banks were the favourites and similarly in autos also we saw that there was a support that was building up. Therefore we think that these two sectors will continue to look strong at least as we move into the first few trading sessions of May."