Where will the profit pool be generated in next 1 year? Deepak Shenoy points to 3 sectors

economictimes.indiatimes.com:

Deepak Shenoy, Founder, Capital Mind, says: Next year will continue to be a year for a lot of primary manufacturing businesses. And in some sectors, there will be extraordinarily large profits, including defence and railways. But in the banking sector, we are going to see some profit pool expansion because this year has been one of margin contraction. Also we should see some reasonable profit growth in auto. ”

Shenoy also says he is very biased in favour of Reliance as the House is long Reliance and think it is going to be a lot more valuable in the future. “We just have to wait. I do not mind waiting a long time. We do not generally pick a stock only for a year, but in a situation that can last 5 or 10 years, we are comfortable holding until the situation reveals itself.”

We have addressed this time and again as to how the grand old blue chips, the likes of HDFC Bank, Reliance have completely eluded the market. You have been quite bullish on Reliance. Where do you see a big trigger coming in from Reliance or do you think Reliance is going to be one of those stories which is consolidated up until now but if the market moves up, it is going to move Reliance along with it instead of being the other way around?
Yes, it is interesting that you say that it is one of our largest positions.

And honestly, it has not been such a great return in the last year or year and a half. But here is a combination of both a special situation and where the Indian consumption story and the Indian telecom story is going to go. It is a combination of the two.

The special situation is in the demergers. They have already demerged Jio Financial. That is a Rs 200 stock price that you do not see right now because it has fallen by Rs 200 because