Financials, capital goods likely to lead; expect rotation in defence, railway names: Gurmeet Chadha
"Companies like Voltas performed well initially, but their recent results, especially in the EMPS space, were disappointing. With per capita spending increasing, fast-moving electrical goods, home improvement, and auto sectors tend to do well," says Gurmeet Chadha, Complete Circle Consultants
We are hearing reports suggesting an acute shortage of air conditioners and other consumer durable goods. Have you managed to get your hands on them?
There is indeed a shortage, and discounts have virtually disappeared, not just for air conditioners but also for refrigerators and air coolers. Companies like Voltas performed well initially, but their recent results, especially in the EMPS space, were disappointing. With per capita spending increasing, fast-moving electrical goods, home improvement, and auto sectors tend to do well. If we compare this to China, where per capita GDP grew by 13-14% over a 15-year period, the consumer durable segment grew by 20%, and the auto sector by 26%. This is more of a long-term play, and extreme weather conditions could provide a better entry point.
What about the rest of the market? Just 20 minutes until Monday morning when we react to the exit polls. Should we do nothing until the June 4th decision?
No, stick to your plan. In the market, you have to work on probabilities. For a 100% probability, there's a fixed deposit. Our stance is that there is a very high probability of continuity in government. I'm not a psephologist, so I can't predict the exact number of seats, but continuity seems
