Prefer infrastructure stocks: Amit Dalal

Amit Dalal, ED at Tata Investment Corporation told CNBC-TV18, "I have always said this over a period of time that I am not very positive on the capital goods sector which supplies to the power industry whether they are equipments used for putting up a power plant or with equipments used for distribution equipment. I think there is just too much surplus capacity in the system and what we saw in FY3 to FY8 in terms of the capex that took place in this industry, it just does not have the strength to repeat that capex and you will always find margin pressures in this basket of companies.”

“The infrastructure, the E&P companies, the ones which are going to participate in any kind of change that will come because of the new government’s allocation and perhaps focus of development be it road construction, be it refrigeration and transportation of food materials, be it in terms of building up railway stations or railway tracks, I think all these companies at least the leaders in these sectors should be invested in and some money should be allocated to them,” he added.