KR Bharat cautious on financial services

KR Bharat of Advent Advisors told CNBC-TV18, "I would certainly look at Larsen and Toubro (L&T) and in capital goods I would look at BHEL. I continue to be cautious on financial services and the reason for that is there is a very strong link between banks and how the economy is doing because the banking sort of has a multiple growth effect to the growth in GDP."

"If the slowdown continues and I think there is consensus that there is a slowdown, the only fight if you will is whether it is 3.8 or 4.5 or 4.7 percent that will negatively affect financial services and I also believe that the level of stated NPA in the system is far less than reality. Both anecdotal evidence as well as basic analysis of banks balance sheets would sort of point to that. So, I would actually be little cautious on that sector."