Anand Tandon, CEO at JRG Securities told CNBC-TV18, "We haven’t seen the economy picking up yet. It is still pretty much up in the air. Earnings growth this time has been a little better than the first quarter, but overall for the first half, we are still at 5-6 percent and I don’t see that going to double digits anytime soon."
He further added, 'We still have to wait and which means that the market is running ahead of itself. Larsen and Toubro (L&T) has started to look at order book from oversees market and not local market which essentially means they are pushing their margins down. There is a huge expectation that capex will increase. Market celebrates the fact that Bharat Heavy Electricals (BHEL) is going out and trying to bid for a UMPP in Orissa."
"If one really looks for safety as well as earnings, one has to look for export oriented companies. If someone wants to look at cyclicals, public sector banks are probably the best bet," Tandon said.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
