Prefer capital goods stocks: Neeraj Deewan

Neeraj Deewan of Quantum Securities told CNBC-TV18, "Though you have already seen a lot of movement in the capital goods stocks and purely on valuation they might not look that expensive, they will be very expensive as far as PE’s are concerned. However, the kind of delta which is there in capital good stocks once order flow improves the capacities are already there and you get multiple benefits on the bottom line."

"So keeping that in mind one needs to be positioned and be invested in capital goods stock. You see even railways, stocks like wagon manufacturing companies, railways complete solution companies, Texmaco Rail or Titagarh Wagons have been doing well post the Railway Budget. Going ahead the earnings will improve with so much stress on development of railways in the present infrastructure," he added.

"There are stocks which are into Earth Moving Solutions, road manufacturing equipment, those stocks also going ahead you will see order flow coming with the kind of stress that has been emphasize on so many roads to be built in the next two or three years. So these kinds of stocks should be there in the portfolio. Then there is power infrastructure and stocks related to power transmission where lot of investment is happening in, lot of execution is picking up now. So that is also one space one will have lot of opportunities going ahead," he said.