Rahul Singh, Head of Equity Research at Standard Chartered Securities told CNBC-TV18, "There are two sectors where we are very bullish on - oil PSUs and power sectors. Both sectors have not bounced back very hard from their respective bottoms and both these sectors have seen reforms happening, but the market has not paid enough attention to it."
He further added, "In oil and gas we have seen diesel price hikes happening, but the valuations are still lower than what they were in January. So, that is one sector which can benefit immensely from a strong government at the center sometime later next year even as the current improvement continues under the current government."
"In the power space we have seen things falling in, but as a package market has not acknowledged it enough. We recently upgraded Tata Power and that remains our top pick in the sector. We also have Bharat Heavy Electricals (BHEL) in our portfolio. So, instead of running after PSU banks where the bounce back has been hard and there are still lot of issues to get sorted out we would play through oil PSUs and power sector," Singh said.
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