Prefer Alstom T&D, says Prakash Diwan

Prakash Diwan of Altamount Capital Management told CNBC-TV18, "I would start riding the capital goods sector very eagerly. Given the fact that the order flow has been so robust, if you see numbers come from L&T and BHEL, the government, once it has its coffers full, will start spending on important projects. A lot of stalled projects which they have got cleared. And capital goods and then of course, heavy engineering and then medium engineering, that is the pecking order in which things would improve."

"One of the stocks that we like in that space is Alstom T&D, after the T&D business has gone off to GE, the other business is primarily now driven by the rail solutions. And what is interesting is that the management is extremely positive about the changes that have been happening in the Indian economy. So, that is a stock we could talk in more detail whenever you want, but there is some very key triggers in the offing for this stock to start getting much more popular within institutions and within a lot of other portfolios," he said.