Private sector banks, including retail and corporate lenders, will top BNP Paribas SA's preferences in India this year, according to its Asia Pacific Equity Strategist Manishi Raychaudhuri.
The other sectors of interest will include consumer discretionaries, oil and gas, industrials, information technology services and a few names in the auto sector, Raychaudhuri told BloombergQuint, adding that the biggest portion of the weight will come from finance companies.
Raychaudhuri said the stake sale of Reliance Industries Ltd.'s refinery business to Saudi Aramco is beneficial for the sector. “Whenever we see investor interest, not just from the secondary market but also from primary investors, that indicates a positive outlook for the sector as far as long term is concerned.”
The Indian equity market, he said, is rallying on a “too fast, too soon” basis. “BNP Paribas is unequivocally bullish on the Indian market in a medium term,” he said, adding that he expects the market to take a breather in the near term.
Markets And Elections
- Impossible to predict election outcome in India
- Short-term impact on markets
- Markets doubt longevity of such outcomes
Other Highlights:
- Sees actively managed funds flowing back to India, Asian markets
- Says recent rally in auto stocks is surprising
- Expects the auto sector to underperform or perform in-line in the near term, hurt by newly imposed safety and emission norms
Watch the full interview here:
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