Both consumption or capex stocks back with a bang; look for proxy plays to defence, railways: Devang Mehta
Devang Mehta, Director-Equity Advisory, Spark Private Wealth, says a combination of sectors related to capex and consumption and certain sectors in credit growth will be a good investment portfolio if somebody has a one-and-a-half, two-year horizon. Mehta further says look into proxy plays like bearing companies for railways and defence stocks.
What are you doing in the markets right now? Any fresh stocks that you have managed to recommend to your clients? Any fresh ideas?
Devang Mehta: I will talk more about themes and sectors rather than ideas. I will give certain examples on the way. We feel that both sides of the market – be it consumption or capex – have come back with a bang. Post the elections, post the budget, and post this volatility that we saw a couple of weeks back during the yen carry trade, the market has gone from strength to strength. So, whichever sectors were not performing, be it FMCG companies, auto companies and even discretionary consumption companies like Titan, and Trent, have come up with a good set of numbers.
Trent’s was a market-beating number, which nobody imagined and this has been one of our portfolio stock for most of our clients. It has also come up with a great set of numbers. So, again, certain sectors have started to do very well, even rural consumption. Even the tier II, tier III cities started to pick up a bit and the capex side of the market, which people had started to write off like power, power ancillaries, capital goods, and infrastructure, are back.
So, both the wheels
