Financials to drive market for next 2 months; consumer may overtake capital goods stocks near term: Rahul Shah

economictimes.indiatimes.com:

Rahul Shah, V-P, Equity Advisory, MOFSL, says PSU banks are a top idea. Shah feels PSU banks will continue to do well this year and they are very overweight on it versus the private banks, so that is one basket. Secondly, in the PSU basket itself, OMCs have done well again in the last six months but here onwards, stocks like HP, BP, IOC can still compound another 20% from here. So, PSU banks and OMCs are one trades where risk versus reward could be quite favourable.

Banks are coming back in favour and we can see that the FII participation as well is picking up. In fact, yesterday it was the FIIs which overtook DIIs. Is this going to be an elongated patch of FII money flowing in and thereby banks doing well?
Rahul Shah: We have seen continuous selloff by FIIs for quite some time and their participation versus the retail versus the DIIs has been fantastic and the markets have given robust returns. Whenever they return, there are two-three sectors which are their favourites and one of them is financials. I think that in the last four-five days we are seeing that action in the entire financial space.

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Most of the large private sector banks which have been laggards for quite some time are just taking the front seat after a long time. I think this should continue for some time. They