Pratik Gupta, MD & Head Equities at Deutsche Equities advises investors to prefer banking stocks.
Pratik Gupta, MD & Head Equities at Deutsche Equities told CNBC-TV18, "There are different ways to play capital goods story. There are midcaps also, but midcaps are not liquid enough for a lot of the institutional investors in many cases. You need to be prepared for even more volatility. You need to have a longer term investment horizon."
He further added, "For lot of these companies the headline valuations as they stand right now on current earnings estimates may seem expensive. As we have seen in the past, in previous cycles when you have the economy beginning to recover the earnings estimates lag behind."
"I would go back to banks as another way to play in general overall economic environment wherein the worst of the non-performing loan (NPL) concerns are in the price already. So banks would be one of the favourite sectors as far as we are concerned," Gupta said.