Positive on four-wheelers space: Manishi Raychaudhuri

Manishi Raychaudhuri of BNP Paribas told CNBC-TV18, "We still remain positive on private sector banks. In the first half IT services sector gave some negative surprises, we think that we have crossed that hurdle and the worst is behind us. The US dollar appreciation would obviously be another tailwind for this sector.""The select autos have actually underperformed but now we are beginning to see the impact of lower commodity prices on higher margins, so particularly in the four-wheelers we remain positive on that side. Also select few commodities particularly in the oil and gas or energy, there both on the refining margins, we are seeing positive momentum. So, that would basically be the main asset allocation. Apart from that there are certain pockets in industrials that we like particularly the large companies which are benefitting from any area which have expertise in any area of infrastructure and which have deleveraged balance sheet," he added. "I would think that this aspect of tracking leverage on balance sheets is going to be critical not just for Indian equities but also the regional equities because leverage on balance sheets is going to be painful particularly if the company has a foreign exchange leverage US dollar denominated, so that is one area that we would remain cautious about, that is we would like to avoid companies which have a highly leveraged balance sheet," he said.