“I remain optimistic on the market as perhaps the worst is over, there would be greater and glider tiding for the market in Samvat 2076,” market veteran, Ramesh Damani, Member of BSE told CNBC-TV18.
A lot of retail investors felt the pain in the past, due to portfolio pressure and this is the first time in the last two to three years that the market bounced back with plenty of stocks moving higher substantially, he added.
Damani is bullish on the public sector undertaking (PSU) space as he believes there could be good value unlocking in the days to come with BPCL being expected to be privatised by March 2020.
“Whole dominos can fall in the privatisation candidate list. Defence and railway stocks are looking attractive to me. The worst for telecom stocks seems to be over and there could be two strong players in the market. Investors should look at some midcaps. I see a lot of value unlocking in these sectors,” he explained.
He continued that telecom is a nice contrarian call considering the worst is over. “Look at — case by case — sectors like paper, auto ancillary, media where there could be higher cash value and high dividend yield. Invest in these stocks with a long period — three to five years — as these would give superior return,” he advised.
Damani has been bullish on the Quick Service Restaurant (QSR) space as well. “I would continue to remain optimistic on QSR space as India is a young people country. Even at these levels, I am optimistic as these businesses will do well over next 3-5 years,” he said.
Speciality Restaurants, Jubilant Foodworks and Westlife Development fall under the QSR space.
Damani does not expect any technical threat to businesses in the next three to five years.
On the earnings front, he said it was a very long and dry earnings season. “I look at individual stocks, lot of stocks are already cheap as these companies look confident about next six months than previous 6-9 months.”
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