Rahul Shah from MOSL says the mood is very positive at their desk. Many high-net-worth individuals (HNIs) missed out on last Tuesday’s market sell-off but are holding onto their positions, anticipating further growth. Shah emphasizes that PSU banks are currently the top bets in the financial sector. He believes PSU banks will outperform private banks, which still have room to grow.
PSU Banks vs. Private Banks
PSU banks showed strong performance this quarter compared to private banks. Shah highlights that while private banks also performed decently, the focus remains on PSU banks for better returns. ICICI Bank and Axis Bank are the top choices among private banks, but PSU banks are expected to provide more significant gains.
Consumer Stocks and Market Trends
Shah notes that the entire consumption basket, including FMCG and liquor stocks, has gained momentum recently. He believes there is still an opportunity to invest in these stocks as volume recovery is evident from the fourth quarter results. Investors should consider adding FMCG and liquor stocks to their portfolios.
Ola Electric IPO and Two-Wheeler Companies
Regarding the upcoming Ola Electric IPO, Shah prefers sticking with established companies like Bajaj, Hero, and Eicher. These companies have performed well over the past six months, showing 25-30% growth. He sees potential for further growth in the two-wheeler space and will evaluate Ola Electric at the time of its IPO.
Opportunities in Cement and Housing Finance
In the cement sector, Shah mentions rumors of price hikes, leading to a positive movement in cement stocks. He recommends large-cap names like UltraTech and suggests that buying Grasim, UltraTech’s holding company, might offer more upside. For mid-cap investments, JK Lakshmi looks promising.
Shah also sees potential in housing finance companies, benefiting from the strong real estate market. He suggests PNB Housing, Repco, and Chola as good investment options due to their favorable risk-reward ratios.
Overall, Shah remains optimistic about the financial sector, particularly PSU banks, consumer stocks, and housing finance companies, while also seeing opportunities in the cement and two-wheeler industries.
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