Tirthankar Patnaik of Mizuho Bank told CNBC-TV18, "At this point I see markets going into enhanced volatility. I see markets probably at the end of their relief rally and see earnings season coming in where there is unlikely to be a significant positive surprise. Rather than pushing on sectors I would be advising investors to be cautious about certain sectors and it would be steel. This is one of the sectors we are fairly negative."
"Numbers for all the large companies are likely to be fairly negative given the drop in commodity prices that we have seen in this particular quarter. With the government support on anti-dumping duties coming in only about June, we have already seen numbers where the imports from China until May had gone up about 53-54 percent on a Y-o-Y basis. So, that is likely to hurt steel companies in a meaningful sense," he said.
"The other sectors that we will be worried about will be the cement space where we see numbers to be fairly negative. So, these are two sectors where I would be worried other than the public sector banks space. Public sector banks is one space where despite all the negative news that is coming in, there is disappointment in terms of asset quality. So, these are sectors - cement, steel, basically commodities and public sector banks where I would be fairly negative."
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