Stay away from the infra, capital goods space: Chakraborty

One can stay away from the infrastructure and capital goods space, says Abhjit Chakraborty, Sr VP - Institutional Equity, Fortune Financial.

Chakraborty told CNBC-TV18, "I would still stay away from the infrastructure and capital goods names because the hope has not materialized. There were expectations that there could be some improvement in the order inflows or the financing cost would come down, the interest costs coming down after RBI signals it’s a reversal in policy. But none of them has actually taken place at the ground level. So yes, at the beginning of the year there was a liquidity surge and these beaten down stocks saw the maximum alpha in returns time. But as reality catches up, fundamental catches up you realize that there is not much underlying fundamental strength for the rally to continue and nothing has changed really."
He further added, "As far as BHEL is concerned I think it’s a structural short. There is absolutely no reason to get bullish on BHEL at any level. There could be a bounce back anytime and then once again starts sliding because as things stand today there is no visibility on order inflows for the company and the company might not have any business after a few years down the line as the 12th Plan orders are already given. I think it’s the structural issue in BHEL and unless the government decides to give some new direction to the company in terms of new business activities I think it’s not going to be on the radar or buying list for anybody."