Buy defensives, private sector banks advises UR Bhat

According to UR Bhat, MD of Dalton Capital Advisors, one should park his/her money into defensives and private sector banks.

Bhat told CNBC-TV18, “We really don’t know whether the follow up in terms of the land acquisition act and other stalled projects and problems with the approvals and all that - that has really not been tested yet. We really don’t know how far this will go and aid further investment and further progress in rate sensitives. Therefore it is too early a call to make on things like real estate.”
He further said, “But rate sensitives, at some stage, probably this quarter, June quarter might be one of the worst quarters for public sector banks in terms of NPA accretion. So after that, there maybe a case for someone to have a look at these stocks; but I think as of now it should be defensives and private sector banks and the FMCG, pharma. I think this is where one should park their money.”
“Safety has to be from the defensives - that is where I think most money is parked especially of big institutions. Unless there is some big movement on the policy side, I don’t think people really go all out to buy the cyclical or even the industrials. There is certainly going to some lag effect between some dramatic policy movement and entrepreneurs starting to think in terms of new investments.”
“Therefore, I think there has to be some good movement on the policy side before other sectors - the cyclical and industrials start finding flavour of the investors. But till then it will be more or same. The defensives and the private sector banks - that’s where money would tend to flow,” Bhat added.