Godrej, Sobha and MacroTech top 3 realty picks; accumulate Reliance on dips: Nischal Maheshwari

economictimes.indiatimes.com:

Nischal Maheshwari, CEO-Institutional Equities, Centrum Broking, says there are no foreseeable triggers at the moment as far as Reliance is concerned. Yesterday's phone launch is a two-edged sword. It cuts both sides.

There are some issues as far as petrochemicals is concerned as prices are going down. Many sectors have not seen strong recovery in the current quarter. All the three sectors of Reliance are a bit tepid at the moment.

If it corrects, one can accumulate.Quite a few Q1 updates are coming in from the banking sector. The first update for HDFC Bank combined entity just came out and the advances have seen a stupendous growth of about 16%. Deposits have risen about 19% on a year-on-year basis. The merged entity advances have seen a growth of about 13%. For IndusInd Bank, the sequential loan growth has been strong. RBL and Bandhan Bank have seen a bit of a moderation. What is your reading?This was expected.

Banking is in a Goldilocks scenario at the moment. There is a very good demand and the economy is doing pretty well. We have the cleanest balance sheets in the last one decade.

So definitely this is a very good scenario as far as banking is concerned. Given that the economic growth is pretty strong, we are expecting robust growth in loans is going to continue for at least for the current year. So it is a good setup as far as the banking sector is concerned.

Most of the banks have shown strong growth. We need to focus on what RBI has recently put out that there has been defaults in the retail sector especially the personal loans. They have highlighted that now the outstanding or rollovers for a 30-day and a 90-day have been going up.