Moneycontrol boarder Rakesh from Hyderabad asked UR Bhat MD, Dalton Captial Advisors if he thought the theme of buying defensives and staying cautious on cyclicals would continue until election results?
According to Bhat that is the only thing to do now because we still don't have a clear view as to how the election results would shape up and whether there would be decisive government in place.
However, as we run up to the election, if there are indications that there would be a decisive government in place then I think these cyclicals are the one’s which will offer one of the best delta. So, one should slowly start shifting from defensives to cyclicals in the run-up to the elections, if there is indication that the decisive government will come to rule the country. But if not, this current stand of staying on defensives is the best bet.
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