Rohit Srivastava of indiacharts.com on Friday said he continues to remain positive on the auto, PSU and metal sectors.
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"You are getting good participation from multiple sectors. The turnaround has been in the auto sector which has been lagging for quite a while and that is not really over. So auto's is one place to buy. PSUs that have done well across segments are still looking strong and that momentum will probably continue. The metals sector has been weak since that pressure came from China but that is sort of now done because the downward momentum has gone, we are just waiting for some kind of upward momentum to build and it should be very close. So we are on the verge of starting another metals rally," Srivastava said.
Ajay Srivastava, chief executive officer of Dimensions Corporate Financial Services, said the auto sector is unlikely to outperform the market with the exception of Tata Motors. He feels Tata Motors can reward shareholders if the company continues to refocus itself on B2C business.
"In the auto space you will see that Tata's will gain traction because if they do what they are doing on the B2C side and refocus themselves on that, they should put tremendous value to shareholders. In other auto spaces, the trade-off is lower volumes but higher profitability. So discounting has gone out of the window. But is it a sector that will outperform the rest of the market? I don't think so but it is a point of time where you cannot lose much if you invest in it and gains can be quite substantial as you saw in Tata Motors."
He said IT stocks are expensive but in the long term he remains positive on the sector, "TCS is spewing cash, Infosys is doing buybacks and cashback to the shareholders, so that is the big trigger in this that whoever is the investor, he is seeing a good amount of cash coming back to him apart from the fact that you shouldn't see any major surprises. So the little correction which we had on the basis that rupee was at 72-72.5 and there was some concern in the market that will it start to hurt the IT companies because their cost is going up but with rupee back at 75 that concern is gone. So I think you will see traction in the sector but I don't think you will see over performance beyond the market at this point of time."
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