Stay away from capital goods space: Manish Sonthalia

Manish Sonthalia of Motilal Oswal AMC told CNBC-TV18, "Most of the negatives are there in the price of all the capital goods companies. One knows everything about the deteriorating working capital cycle, the index of industrial production (IIP) numbers are showing decrease in capital goods even on a lower base etc."

"So the short point is, market is trying to read a change in the investment cycle post the incorporation of a new government. People are by and large expecting that there will be a change of guard at the center that is the entire premise on which the capital goods space is moving up," He said.

He further said, "A confirmation of this from my end whether we want to increase the exposure on the capital goods space would only be known may be after December 8 if one has a better election results. Then there could be definitely a phase of moving into some of the investment related themes."

"As of now I am just giving it a pass as far as the capital goods space is concerned. They have rallied, but it is just not increasing its exposure to capital goods space and the infrastructure space or the real estate space just yet," Sonthalia added.