Jyotivardhan Jaipuria overweight on auto, pharma space

Jyotivardhan Jaipuria of BofAML told CNBC-Tv18, "If you look at our overweight then in some sense they are mix of whatever has done well over the last few years and what we think will do well as the economy slowly starts to recover. The stocks may move much ahead of the actual recovery in volumes or in earnings coming through. We are overweight autos and that is our biggest overweight and the whole logic is slowly as we see the economy start to recover, stock prices will move up much faster than the recovery in the economy."

"We are still overweight pharmaceuticals and software and those are two sectors which have done well over the last few years and that in some sense plays a taper fear also that if we get taper starting to have an impact and the currency tends to depreciate a bit, you are into two sectors, which will do well. What it also plays to some extent is that US is going to recover in terms of economy, so IT is the best way to play that," he added.

"Apart from these three sectors we like telecom sector and we are overweight energy on the hopes that oil reforms will continue once we get a new government, they will probably axe rate and that will be a trigger for oil."

"One of our biggest underweight is consumer staple and that is a sector which has done very well over the last few years and we are underweight that sector because it has got played out, valuations are not very cheap and to some extent that is where earning may start disappointing a bit on the margin. So, we have taken some sectors which did well over the last few years and underweighted them and kept our overweight on some of the other sectors," Jaipuria said.